A computer company has $3,000,000 in research and development costs. Before accounting for these costs, the net income of the company is $3,600,000. What is the amount of net income or loss before taxes after these research and development costs are accounted for?
A) $600,000 loss.
B) $3,000,000 net income.
C) $600,000 net income.
D) Cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

The net income before accounting for R&D costs is $3,600,000. After subtracting the $3,000,000 R&D costs, the net income is $600,000.

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