Question
Hyland Companys research and development (R&D) records contained the following information for 2020. Materials used in R&D projects $ 720,000 Equipment acquired that will have
Hyland Companys research and development (R&D) records contained the following information for 2020.
| Materials used in R&D projects | $ 720,000 | |
| Equipment acquired that will have significant alternative future uses including future R&D projects. | 3,600,000 | |
| Depreciation expense for 2020 on above equipment | 900,000 | |
| Personnel costs involved in R&D projects | 1,800,000 | |
| Consulting fees paid to outsiders for R&D projects | 180,000 | |
| Indirect costs reasonably allocable to R&D projects | 360,000 | |
| $7,560,000 |
Required
Determine the amount of research and development costs debited to expense and reported on Hylands 2020 income statement.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
