FINANCIAL ACCOUNTING

Required information [The following information applies to the questions displayed below) company Systems modified its model Z2 the company to incorporate a new communication device. The company made the following expenditures: Part 2 of 2 Basic research to develop the technology Engineering design work Development of a prototype device Testing and modification of the prototype Legal fees for patent application Legal fees for successful defense of the new patent 0.8 points $4,100,000 1,200,000 610,000 410,000 81,000 03:5756 Total $6,442,000 Skipped During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the patent. Management contends that the device represents an improvement of the existing communication system of the company and, therefore, should be capitalized. eBook Print References 2. Determine the amount the company should report as research and development expense in the income statement 8 of 11 Next> Prev