Materials used in research and development projects$4,500Equipment acquired that will have alternative future uses in future R&D projects for five years1,500Personnel costs of employees involved in R&D projects5,500Consulting fees paid to outsiders for R&D projects2,800Indirect costs reasonably allocable to R&D projects250Legal fees associated with registration of a patent resulting from a 2020 R&D project2,500Required:Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income.$fill in the blank 1

In this question, we have to compute the R&D cost that can help in determining the net income

Answered: Materials used in research and…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.9MCP

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Materials used in research and development projects	$4,500
Equipment acquired that will have alternative future uses in future
R&D projects for five years	1,500
Personnel costs of employees involved in R&D projects	5,500
Consulting fees paid to outsiders for R&D projects	2,800
Indirect costs reasonably allocable to R&D projects	250
Legal fees associated with registration of a patent resulting from a 2020 R&D project	2,500

Required:

Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income.
$fill in the blank 1

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