Question
West Coast Growers incurs the following costs during the year related to the creation of a new disease-resistant tomato plant. Salaries for R&D $530,000 Depreciation
West Coast Growers incurs the following costs during the year related to the creation of a new disease-resistant tomato plant.
| Salaries for R&D | $530,000 |
| Depreciation on R&D facilities and equipment | 144,000 |
| Utilities incurred for the R&D facilities | 6,900 |
| Patent filing and related legal costs | 26,500 |
| Payment to another company for part of the development work | 12,800 |
What amount should West Coast Growers report as research and development (R&D) expense in its income statement?
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Auditing An International Approach
Authors: Wally J. Smieliauskas, Kathryn Bewley
6th edition
978-0070968295, 9781259087462, 978-0071051415
