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Notting Hill Company incurs the following costs for R&D activities:
Material used from inventory ............... $15,000
Equipment purchased for R&D with no other use ....... 85,000
Depreciation on building housing R&D activities ....... 10,000
Wages and salaries of R&D employees .......... 25,000
Allocation of administrative & general expenses ...... 13,500
Prepare Notting Hill's journal entry(s) to record its research and development.
Classify the following items as (a) an addition to the bank balance, (b) a subtraction from the bank balance, (c) an addition to the book balance, or (d) a subtraction from the book balance:
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