Falling Parachutes Inc. put some work on a new patent to slow down the fall of objects
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Question:
Falling Parachutes Inc. put some work on a new patent to slow down the fall of objects falling from high altitudes. The patent will be used in a product that is not yet sold in the market by the company. The following expenditures were required in the lab where the patent was designed:
Wages of scientists: $100,000
Materials used in testing: $50,000
Depreciation on Machines used in the lab: $20,000
The machines used in the lab were purchased from a vendor for $1,000,000 and will be used in other projects after the patent is complete.
Falling Parachutes should recognize the amount as an R&D expense?
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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