What is the total amount to be classified and expensed as research & development

Question

What is the total amount to be classified and expensed as research & development in 2017?

THE ANSWER IS $685,000. Please show me how to get to this number?

Candalibra Company incurred the following costs during the year ended December 31, 2017: Laboratory research aimed at discovery of new knowledge 300,000 Costs of testing prototype & design modifications (economic viability not achieved) 65,000 Quality Control during commercial production, including routine testing of products 220,000 Construction of research facilities having an estimated useful life of 12 years but no alternative future use 410,000

What is the total amount to be classified and expensed as research & development in 2017?

THE ANSWER IS $685,000. Please show me how to get to this number?

Explanation / Answer

Amount qualifying for research = 65000+220000 + 410000 = 695000
Laboratory research aimed at discovery of new knowledge does not qualify as research & development expense in 2017.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.