During 2017, Elysium Inc.incurred the following costs: Assuming the 6 specific conditions have been demonstrated, in 2017, Elysium Corp.would report development costs of
A)$1,545,000.
B)$1,295,000.
C)$935,000.
D)$610,000.

Question

During 2017, Elysium Inc.incurred the following costs:  Assuming the 6 specific conditions have been demonstrated, in 2017, Elysium Corp.would report development costs of
A)$1,545,000. 
B)$1,295,000. 
C)$935,000. 
D)$610,000.

Quizplus · Accepted Answer

Elysium Inc. incurred a total of $1,295,000 in costs in 2017 that meet the 6 specific conditions for reporting development costs. These costs include $315,000 in direct materials, $520,000 in direct labor, $160,000 in overhead, and $300,000 in legal and regulatory fees. The $60,000 in patent application costs must be capitalized as an intangible asset, not included in development costs.