Question
Jesse Corporation incurred the following costs during 2017 in the development and production of a new product: $20,000 in legal fees to obtain a patent,
Jesse Corporation incurred the following costs during 2017 in the development and production of a new product:
$20,000 in legal fees to obtain a patent, $250,000 in the design, construction, and testing of a reproduction prototype and model, $200,000 in engineering activity required to advance the design of the product to the point that it was ready for manufacture, $150,000 in engineering follow-through in an early phase of commercial production, $15,000 in trouble-shooting in connection with breakdowns during commercial production.
Required: Indicate below which costs Jesse Corporation should include in R&D expense for 2017 by checking the appropriate box next to your answers
NOTE: THIS IS A MULTIPLE ANSWER QUESTION WITH MORE THAN ONE ANSWER
$15,000 | ||
$250,000 | ||
$20,000 | ||
$150,000 | ||
$200,000 |
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