Question

In 2016, Austin Powers Corporation developed a new product that will be marketed in 2017. In connection with the development of this product, the following costs were incurred in 2016: research and development costs $400,000, materials and supplies consumed $60,000, and compensation paid to research consultants $125,000. It is anticipated that these costs will be recovered in 2019. What is the amount of research and development costs that Austin Powers should record in 2016 as a charge to expense? Amount of research and development costs

Question 23 x Your answer is incorrect. Try again. In 2016, Austin Powers Corporation developed a new product that will be marketed in 2017. In connection with the development of this product, the following costs were incurred in 2016: research and development costs $400,000, materials and supplies consumed $60,000, and compensation paid to research consultants $125,000. It is anticipated that these costs will be recovered in 2019. What is the amount of research and development costs that Austin Powers should record in 2016 as a charge to expense? Amount of research and development costs 400,000

Answer 1

What is the amount of research and development costs that Austin Powers should record in 2016 as a charge to expense?

Ans: $585,000

Explanation:

($400,000 + $60,000 + $125,000)

All expense incurred in 2016 would be expensed in'2016'only.