A company incurred the following costs related to research and development for the current year: The equipment will be used in other projects. Depreciation in the current year is $70,000. For what amount should the company report research and development expense?
A) $430,000.
B) $670,000.
C) $1,200,000.
D) $590,000.

Question

A company incurred the following costs related to research and development for the current year:  The equipment will be used in other projects. Depreciation in the current year is $70,000. For what amount should the company report research and development expense?
A) $430,000. 
B) $670,000. 
C) $1,200,000. 
D) $590,000.

Quizplus · Accepted Answer

R&D expense = $120,000 + 240,000 + 70,000 + 160,000 = $590,000.

A Company Incurred the Following Costs Related to Research and Development