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Muharraq Co. paid the following different costs in 2020: 1. $1,200,000 to acquire a machine to be used in the R&D projects. The machine
Muharraq Co. paid the following different costs in 2020: 1. $1,200,000 to acquire a machine to be used in the R&D projects. The machine has a 6-year usefial life (Muharraq Co started using the machine on 1 January 2020 and a straight line depreciation 2. $750,000 for construction costs incurred to open a new plant 3. $230,000 for salaries expenses to the workers who investigate a new formula. 4 $310,000 for material and equipment used in research and development project 5. $270,000 for advertising expenses to the new products 6 $190,000 for consultation services provided by Manama Co during the research process Required: How much Muharraq Co. should record as Research & Development expense in 2020 (Show your calculations)
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