Delaware Company incurred the following research and development costs during 2016: Salaries and wages for lab research $ 490,000 Materials used in R&D projects 290,000
| Delaware Company incurred the following research and development costs during 2016: |
| Salaries and wages for lab research | $ | 490,000 | |
| Materials used in R&D projects | 290,000 | ||
| Purchase of equipment | 990,000 | ||
| Fees paid to outsiders for R&D projects | 410,000 | ||
| Patent filing and legal costs for a developed product | 74,000 | ||
| Salaries, wages, and supplies for R&D work performed for another company under a contract | 440,000 | ||
| Total | $ | 2,694,000 | |
| The equipment has a six -year life and will be used for a number of research projects. Depreciation for 2016 is $210,000. |
| Required: |
| Calculate the amount of research and development expense that Delaware should report in its 2016 income statement. Research and Development Expense = $? |
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Authors: The Council Of Inspectors General On Financial Oversight
1st Edition
1503369331, 978-1503369337
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