A computer company has $4000000 in research and development costs.Before accounting for these costs the net income of the company is $4800000.What is the amount of net income or loss before taxes after these research and development costs are accounted for?
A)$800000 net loss.
B)$4000000 net income.
C)$800000 net income.
D)Cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

To find the net income or loss after accounting for research and development costs, we need to subtract the research and development costs from the net income before accounting for them.

Net Income before accounting for R&D costs = $4800000
Research and Development costs = $4000000
Net Income after accounting for R&D costs = $4800000 - $4000000 = $800000

Therefore, the net income or loss before taxes after these research and development costs are accounted for is $800000 net income.

A Computer Company Has $4000000 in Research and Development Costs