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Question 5 4.5 points Save Answ Muharraq Co. paid the following different costs in 2019: 1. $1,000,000 to acquire a machine to be used
Question 5 4.5 points Save Answ Muharraq Co. paid the following different costs in 2019: 1. $1,000,000 to acquire a machine to be used in the R&D projects. The machine has a 5-year useful life (Muharraq Co. started using the machine on 1 January 2019 and a straight-line depreciation method is applied). 2. $450,000 for construction costs incurred to open a new plant. 3. $350,000 for salaries expenses to the workers who investigate a new formula. 4. $100,000 for material and equipment used in research and development project. 5. $200,000 for advertising expenses to the new products. 6. $150,000 for consultation services provided by Manama Co. during the research process. Required: How much Muharraq Co. should record as Research & Development expense in 2019? (Show your calculations)
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