Compute the amount of r and d costs that should be

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Question

Consider the following information from a company's records for 2016:

Materials used in research and development projects                                                             $4500

Equipment acquired that will have alternative future uses in future RD projects for live years        1,500

Personnel costs of employees involved in R&D projects                                                           5,500

Consulting fees paid to outsiders for R&D projects                                                                 2,800

Indirect costs reasonably allocable to R&D projects                                                               250

Legal fees associated with registration of a patent resulting from a 2016 R&D project                  2500

Required:

Compute the amount of R&D costs that should be classified as expenses in determining 2016 net income.

Reference no: EM132316461

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