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Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals. Significant research and development ( R&D ) expenditures are made for the development of new drugs and
Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals. Significant research and development R&D expenditures are made for the development of new drugs and the improvement of existing drugs. During $ million was spent on R&D Of this amount, $ million was spent on the purchase of equipment to be used in a research project involving the development of a new antibiotic. The equipment likely will be used only on this one case project. The company president has asked the controller to make every effort to increase earnings because in the company will be seeking significantly new financing from both debt and equity sources. "I guess we might use the equipment in other projects later." the controller wondered. Required Assuming that the equipment was purchased at the beginning of how much should the controller record for research and development expense in What amount would be reported for research and development in under the controller's alternate assumption that the equipment will be used for other projects recently over five years? Does the need for financing justify the controller making the alternative assumption in requirement #
Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals. Significant research and development R&D expenditures are made for the development of new drugs and the improvement of existing drugs. During $ million was spent on R&D Of this amount, $ million was spent on the purchase of equipment to be used in a research project involving the development of a new antibiotic. The equipment likely will be used only on this one case project.
The company president has asked the controller to make every effort to increase earnings because in the company will be seeking significantly new financing from both debt and equity sources. "I guess we might use the equipment in other projects later." the controller wondered.
Required
Assuming that the equipment was purchased at the beginning of how much should the controller record for research and development expense in
What amount would be reported for research and development in under the controller's alternate assumption that the equipment will be used for other projects recently over five years?
Does the need for financing justify the controller making the alternative assumption in requirement #
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