The Llama Company spent $300,000 on research and development during Year 8 to generate new product lines.One of the three projects resulted in a successful patented product while the other two projects resulted in unsuccessful efforts.How much of the $300,000 should be recognized as an expense in Year 8?
A)$300,000
B)$200,000
C)$150,000
D)$100,000
E)$0

Question

Quizplus · Accepted Answer

All research and development costs are expensed as incurred according to accounting standards, regardless of the outcome of the projects. Therefore, the entire $300,000 should be recognized as an expense in Year 8.

The Llama Company Spent $300,000 on Research and Development During