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During the year, a company incurred $250,000 of research and development costs related to a new product it is developing. According to U.S. accounting rules,
During the year, a company incurred $250,000 of research and development costs related to a new product it is developing. According to U.S. accounting rules, how should the company treat its research and development costs?
A company purchased equipment for $65,000 on January 1, 2022. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years. Assuming the straight-line method of depreciation is used, what would be the book value of the equipment at December 31, 2022? Show your calculations.
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