A computer company has $3,500,000 in research and development costs.Before accounting for these costs, the net income of the company is $2,800,000.What is the amount of net income or loss before taxes after these research and development costs are accounted for?
A)$700,000 loss
B)$2,800,000 net income
C)$0
D)Cannot be determined from the information provided

Question

Quizplus · Accepted Answer

The net income before accounting for research and development costs is $2,800,000. After subtracting the $3,500,000 in research and development costs, the company has a $700,000 loss ($2,800,000 - $3,500,000 = -$700,000).

A Computer Company Has $3,500,000 in Research and Development Costs