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3. Consider the following information from a company's records for the current year: Feb. 1 Purchased materials exclusively for use in R&D projects Of these
3. Consider the following information from a company's records for the current year: Feb. 1 Purchased materials exclusively for use in R&D projects Of these materials, 30% are left at the end of the year and will be used in the same project next year (they have no alternative use). $ 85,000 Aug. 28 Construction costs for a new research facility that has been placed in use on this date and is expected to be used to house multiple R & D activities for 20 years. The facility has no expected salvage value. 600,000 Purchased an experimental machine from an inventor. The machine is expected to be used for a particular R&D activity for two years, after which it will have no residual value. Aug. 29 16,000 Nov. 26 Salaries paid to employees involved in R&D Required: Compute the amount of R&D expense for the current year. The company normally uses 35,000 straight-line depreciation for plant assets
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