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

Question

Quizplus · Accepted Answer

The net income before accounting for R&D costs is $2,000,000. After deducting the $2,500,000 R&D costs, the company has a $500,000 loss.

A Computer Company Has $2,500,000 in Research and Development Costs