A computer company has $3500000 in research and development costs.Before accounting for these costs the net income of the company is $2800000.What is the amount of net income or loss before taxes after these research and development costs are accounted for?
A)$700000 net loss.
B)$2800000 net income.
C)$0.
D)Cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

The research and development costs of $3500000 will be subtracted from the net income of $2800000, resulting in a net loss of $700000. Therefore, the answer is option A - $700000 net loss.

A Computer Company Has $3500000 in Research and Development Costs