Homework Answers
Answer: Expense
Explanation:
Research and development (R&D) is a process to improve existing products and creates new products. R&D accounting is that future benefits from research and development are uncertain and R&D expenditures can not be capitalized. So the general rule, R&D costs to be charged to expense.
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research phase from the development phase of the project.
Research-phase costs are $4,000,000, and development-phase costs
are $3,000,000. The IAS 38 criteria have been met for recognition
of 50% of the development costs as an asset. The new product was
brought to market at the beginning of 2021 and is expected...
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