1) Price Company from time to time embarks on a research program when a special project seems...
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1) Price Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $325,000 on a research project, but by the end of 2019, it is impossible to determine whether any benefit will be derived from it.
What account should be charged for the $325,000, and how should it be shown in the financial statements?
2) Additional engineering and consulting costs incurred in 2021 required to advance the design of a product to the manufacturing stage total $60,000. These costs enhance the design of the product considerably. Discuss the proper accounting treatment for this cost.
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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