Martin Inc.incurred the following costs during the year ended December 31, 2007: $\begin{array} { l }
\text { Laboratory research aimed at discovery of new knowledge}&\$180,000\
\text { Costs of testing prototype and design modifications}&45,000\
\text { Quality control during commercial production, including routine testing }&\
\text { of products}&270,000\
\text { Construction of research facilities having an estimated useful life of}&\
\text { 6 years but no alternative future use}&360,000\
\end{array}$
The total amount to be classified and expensed as research and development in 2007 is
A)$555,000.
B)$855,000.
C)$585,000.
D)$285,000.

Question

Martin Inc.incurred the following costs during the year ended December 31, 2007: $\begin{array} { l  }
 \text { Laboratory research aimed at discovery of new knowledge}&\$180,000\
\text {  Costs of testing prototype and design modifications}&45,000\
\text { Quality control during commercial production, including routine testing }&\
\text {  of products}&270,000\
\text {  Construction of research facilities having an estimated useful life of}&\
\text {  6 years but no alternative future use}&360,000\
\end{array}$
 The total amount to be classified and expensed as research and development in 2007 is
A)$555,000.
B)$855,000.
C)$585,000.
D)$285,000.

Quizplus · Accepted Answer

The Answer of Martin Inc.incurred the following costs during the year ended December 31, 2007: $\begin{array} { l  }
 \text { Laboratory research aimed at discovery of new knowledge}&\$180,000\
\text {  Costs of testing prototype and design modifications}&45,000\
\text { Quality control during commercial production, including routine testing }&\
\text {  of products}&270,000\
\text {  Construction of research facilities having an estimated useful life of}&\
\text {  6 years but no alternative future use}&360,000\
\end{array}$
 The total amount to be classified and expensed as research and development in 2007 is
A)$555,000.
B)$855,000.
C)$585,000.
D)$285,000.

Martin Inc The Total Amount to Be Classified and Expensed as Research