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What amount would the company report

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Reference no: EM132431814

Question - Suppose a company spends $200,000 in the current year to research and develop a navigation device for hikers. By the end of the year, the company estimates that the new navigation device has a 70% chance of generating $500,000 in revenues from sales to customers over the next four years.

For what amount would the company report research and development expense in the current year?

A. $200,000

B. $140,000

C. $400,000

D. $0

Reference no: EM132431814

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