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Suppose a company spends $200,000 in the current year to research and develop a navigation device for hikers. By the end of the year, the
Suppose a company spends $200,000 in the current year to research and develop a navigation device for hikers. By the end of the year, the company estimates that the new navigation device has a 70% chance of generating $500,000 in revenues from sales to customers over the next four years. For what amount would the company report research and development expense in the current year?
Multiple Choice
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$200,000
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$140,000
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$400,000
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$0
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