In 2010, Lawrence Corporation incurred development costs as follows: These costs relate to a product that it expects to market in 2011.It is estimated that these costs will be recouped by December 31, 2013.What is the amount of development costs that could be deferred in 2010, assuming that required conditions for capitalization are met?
A)$160,000.
B)$250,000.
C)$410,000.
D)$0.

Question

In 2010, Lawrence Corporation incurred development costs as follows:  These costs relate to a product that it expects to market in 2011.It is estimated that these costs will be recouped by December 31, 2013.What is the amount of development costs that could be deferred in 2010, assuming that required conditions for capitalization are met?
A)$160,000. 
B)$250,000. 
C)$410,000. 
D)$0.

Quizplus · Accepted Answer

The Answer of In 2010, Lawrence Corporation incurred development costs as follows:  These costs relate to a product that it expects to market in 2011.It is estimated that these costs will be recouped by December 31, 2013.What is the amount of development costs that could be deferred in 2010, assuming that required conditions for capitalization are met?
A)$160,000. 
B)$250,000. 
C)$410,000. 
D)$0.

In 2010, Lawrence Corporation Incurred Development Costs as Follows