Question
Oakville Corp. incurred the following costs during 2020 in connection with its research and development phase activities: Cost of equipment acquired for use in research
Oakville Corp. incurred the following costs during 2020 in connection with its research and development phase activities:
Cost of equipment acquired for use in research and development projects over the next five years (straight-line depreciation used) $240,000 Materials consumed in research projects 61,000 Materials consumed in the development of a product committed for manufacturing in the first quarter 2021 32,000 Consulting fees paid in the last quarter of 2020 to outsiders for research and development projects, including $4,500 for advice related to the $32,000 of materials used above 95,000 Personnel costs of persons involved in research and development projects 108,000 Indirect costs reasonably allocated to research and development projects 25,000 General borrowing costs on the companys line of credit 12,000 Training costs for a new customer service software program
Explain the treatment of training costs and borrowing costs incurred after the six development phase capitalization criteria are met.
Explain how the answer may be the same or differ if ASPE were followed.
explain the treatment blah blah and explain how the answer blah blah are with the oaskville corp
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