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Bears Inc. incurred the following costs during the year ending December 31, 2020:
Laboratory research aimed at discovery of new knowledge $ 80,000
Design of new products involving new technology 29,000
Testing of new products 19,000
Construction of research and development facilities 120,000
Instructions
Problem 1: Assuming the 6 specific conditions have been demonstrated, calculate the total amount to be classified as development costs for Bears Inc., either deferred or capitalized, in 2020. Show all your calculation and provide a brief explanation of your rationale.
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