An IT company has $3,000,000 in research costs. Before accounting for these costs the profit of the company is $2,200,000. What is the amount of profit or loss after these research costs are accounted for?
A) $2,200,000 profit.
B) $800,000 loss.
C) $0.
D) Cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

After accounting for research costs the company will report a loss of $800 000.

An IT Company Has $3,000,000 in Research Costs