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bonufazy [111]
3 years ago
8

Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monito

r: Salaries $ 280,000 Depreciation on R&D facilities and equipment 155,000 Utilities and other direct costs incurred for the R&D facilities 72,000 Patent filing and related legal costs 28,000 Payment to another company for performing a portion of the development work 150,000 Costs of adapting the new monitor for the specific needs of a customer 86,000 What amount should Maxtor report as research and development expense in its income statement?
Business
1 answer:
jek_recluse [69]3 years ago
3 0

Answer:

$657,000

Explanation:

The computation of the research and development expense reported is shown below:

Salaries $280,000

Depreciation R&D facilities and equipment $155,000

Utilities and other direct costs $72,000

Payment to another company $150,000

Total R & D expense $657,000

All other items which are not taken in the computation part is irrelevant. Hence ignored it

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