A company incurred the follow costs related to research and development for the current year: The equipment will be used in other projects. Depreciation in the current year is $90,000. For what amount should the company report research and development expense?
A) $500,000.
B) $620,000.
C) $650,000.
D) $470,000.

Question

A company incurred the follow costs related to research and development for the current year:  The equipment will be used in other projects. Depreciation in the current year is $90,000. For what amount should the company report research and development expense?
A) $500,000. 
B) $620,000. 
C) $650,000. 
D) $470,000.

Quizplus · Accepted Answer

R&D expense = $320,000 + 150,000 + 90,000 + 60,000 = $620,000.

A Company Incurred the Follow Costs Related to Research and Development