The following information was obtained from the financial statements for Widgets R Us:
R&D Spending
Year	Expense Amount
2020	$ 4,150
2019	$ 2,765
2018	$ 1,765
2017	$ 3,256
2016	$ 1,970
2015	$ 1,250

Assuming a 21% marginal tax rate, calculate the adjustments to the financial statements assuming they costs were capitalized instead of expensed in 2020. Widgets R Us uses a 5-year amortization schedule, use ½ year convention.

Answer rating: 100% (QA)

Adjustments to the financial statements will be as under for the ... View the full answer