Respuesta :
Answer:
B: $620,000
Explanation:
The computation of amount that company should report research and development expense is shown below:-
Amount that company should report = Technology development (salaries and supplies) + Engineering work performed by another company + Testing new models + Depreciation in the current year
= $320,000 + $150,000 + $60,000 + $90,000
= $620,000
Therefore for computing the amount that company should report we simply applied the above formula and rest value we have not considered as they are not relevant to compute the amount that company should report
R&D expense that company report is $620,000.
Given that,
- Technology development cost is $320,000.
- Engineering work done by another company cost is $150,000.
- Cost of testing new models is $60,000.
- Cost of current year depreciation is $90,000
According to the scenario, computation of the given data are as follows,
R&D expense = Technology development cost +Engineering work performed cost + cost of testing + Cost of depreciation
By putting the value, we get
= $320000+$150000+$60000+$90000
= $620000
So, R&D expense that company report is $620,000.
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