Testbank Multiple Choice Question 116

In 2020, Blossom Corporation incurred research and development costs as follows:

Materials and equipment	$120000
Personnel	140000
Indirect costs	180000
	$440000

These costs relate to a product that will be marketed in 2021. It is estimated that these costs will be recouped by December 31, 2023. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2020?

$320000.

$440000.

$300000.

$0.

Testbank Multiple Choice Question 41

Which of the following does not allow a company to exclude a short term obligation from current liabilities?

Have a contractual right to defer settlement of the liability for at least one year after the balance sheet date.

The liability is contractually due more than one year after the balance sheet date.

Actually refinance the obligation.

Management indicated that they are going to refinance the obligation.