Question

A computer company has $3840000 in research and development costs. Before accounting for these costs, the net income of the company is $2580000. What is the amount of net income or loss before taxes after these research and development costs are accounted for?

Answer 1

Answer:

The answer is "loss of 1,260,000"

Explanation:

Following are the important points of the question:

The cost of research and development is = $3840000

net income of the company is=  $2580000

Find: loss or profit .

According to the rate of the cost, the company cost is higher than the company rate. So, the company goes in loss stage, then  

Loss = total cost - net income

Loss = $3840000 - $2580000

Loss= $ 1,260,000