n Year $1,$ in a project to develop a new product, Indianapolis Company incurred research and development costs totaling $$10$ million. Research$-$phase costs are $$6$ million, and development$-$phase costs are $$4$ million. All of the IAS $38$ criteria have been met for recognition of the development costs as an asset. The product was brought to market in Year $2$ and is expected to be marketable for $5$ years. Total sales of the product are estimated at more than $$100$ million.

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Required:

$1.$ Determine the impact research and development costs have on Lincoln Company's Year $1$ net income under IFRS. Question Blank $1$ of $6$

$2.$ Determine the impact research and development costs have on Lincoln Company's Year $2$ net income under IFRS. Question Blank $2$ of $6$

$3.$ Determine the impact research and development costs have on Lincoln Company's Year $1$ net income under U$.$S$.$ GAAP. Question Blank $3$ of $6$

$4.$ Determine the impact research and development costs have on Lincoln Company's Year $2$ net income under U$.$S$.$ GAAP. Question Blank $4$ of $6$

$5.$ Determine the total impact of R&D costs $($excluding sales$)$ on stockholders' equity over the product's $5-$year life $($at December $31,$ Year $6)$ under IFRS. Question Blank $5$ of $6$

$6.$ Determine the total impact of R&D costs $($excluding sales$)$ on stockholders' equity over the product's $5-$year life $($at December $31,$ Year $6)$ under U$.$S$.$ GAAP. Question Blank $6$ of $6$

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