Oriole Company incurred the following costs during the current year in connection with its research and development
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Question:
Oriole Company incurred the following costs during the current year in connection with its research and development activities.
Cost of equipment purchased that will have an alternative | ||
uses in future R&D projects over the next 5 years | ||
(uses straight-line depreciation) | $287,500 | |
Materials consumed in R&D projects | 56,500 | |
Consulting fees paid to third parties for R&D projects | 125,000 | |
Personnel costs of people involved in R&D projects | 125,500 | |
Indirect costs reasonably attributable to R&D projects | 46,500 | |
Materials purchased for future R&D projects | 33,500 |
Calculate the amount Oriole will report as research and development expenses on its current year income statement. Suppose the equipment is purchased at the beginning of the year.
Total to spend on research and development |
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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