contestada

In 2017, Cullumber Corporation incurred research and development costs as follows: Materials and equipment $111000 Personnel 131000 Indirect costs 171000 $413000 These costs relate to a product that will be marketed in 2018. It is estimated that these costs will be recouped by December 31, 2020. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2017

Respuesta :

Answer:

The amount of research and development costs that should be expensed in 2017 is $413,000

Explanation:

In order to calculate the amount of research and development costs that should be expensed in 2017 we would have to use the following formula:

amount of research and development costs that should be expensed in 2017=  Materials and equipment costs+ Personnel costs+Indirect costs

amount of research and development costs that should be expensed in 2017= $111,000+ $131,000+$171,000

amount of research and development costs that should be expensed in 2017=$413,000

The amount of research and development costs that should be expensed in 2017 is $413,000

The amount of research and development costs that should be expensed in 2020

$ 99000 + $ 119000 + $ 159000

$377,000