Question

Micro Tech, Inc. made the following cash expenditures during current-year related to the development of a new technology which was patented at the end of the year:Materials and supplies used - $38,000R&D salaries - 120,000Patent filing fees - 3,000Payments to external consultants - 50,000Purchase of R&D equipment - 140,000

The equipment purchased has no future use beyond the current project. $10,000 of the materials and supplies used and $32,000 in salaries relate to the construction of prototypes. In its current-year financial statements, Micro Tech should report research and development expenses of:
a. $348,000b. $306,000c. $208,000d. $351,000

Answer 1

a.$348,000

Step-by-step explanation:

Research & Development Cost=Materials and supplies+R&D Salaries+Consultant fees+purchase cost of equipment=38,000+120,000+50,000+140,000

=$348,000