In 2008, Edwards Corporation incurred research and development costs as follows:
These costs relate to a product that will be marketed in 2009. It is estimated that these costs will be recouped by December 31, 2011. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2008?
A) $0
B) $200,000
C) $270,000
D) $350,000

Question

In 2008, Edwards Corporation incurred research and development costs as follows:
 These costs relate to a product that will be marketed in 2009. It is estimated that these costs will be recouped by December 31, 2011. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2008?
A) $0 
B) $200,000 
C) $270,000 
D) $350,000

Quizplus · Accepted Answer

Expense total of $350,000.

In 2008, Edwards Corporation Incurred Research and Development Costs as Follows