In 2011, Austin Powers Corporation developed a new product that will be marketed in 2012. In connection

Question:

In 2011, Austin Powers developed a new product that will be marketed in 2012. In connection with the development of this product, the following costs were incurred in 2011: research and development costs $400,000; materials and supplies consumed $60,000; and compensation paid to research consultants $125,000. It is anticipated that these costs will be recovered in 2014. What is the amount of research and development costs that Austin Powers should record in 2011 as a charge to expense?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...