Required: Prepare correcting entries that reflect the appropriate treatment of the expenditures. Delaware Company incurred the following research and development costs during 2016: $ 400,000 Salaries and wages for lab research Materials used in R&D projects Purchase of equipment Fees paid to outsiders for R&D projects Patent filing and legal costs for a developed product Salaries, wages, and supplies for R&D work performed for another company under a contract 200,000 900,000 320,000 65,000 350,000 Total $2,235,000 The equipment has a seven-year life and will be used for a number of research projects. Depreciation for 2016 is $120,000. Required: Calculate the amount of research and development expense that Delaware should report in its 2016 income statement.
Required: Prepare correcting entries that reflect the appropriate treatment of the expenditures. Delaware Company incurred the following research and development costs during 2016: $ 400,000 Salaries and wages for lab research Materials used in R&D projects Purchase of equipment Fees paid to outsiders for R&D projects Patent filing and legal costs for a developed product Salaries, wages, and supplies for R&D work performed for another company under a contract 200,000 900,000 320,000 65,000 350,000 Total $2,235,000 The equipment has a seven-year life and will be used for a number of research projects. Depreciation for 2016 is $120,000. Required: Calculate the amount of research and development expense that Delaware should report in its 2016 income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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