In 2006, Edwards Corporation Incurred Research and Development Costs as Follows

question 75

Multiple Choice

In 2006, Edwards Corporation incurred research and development costs as follows: $$\begin{array} { l r } \text { Materials and equipment } & \$ 80,000 \\\text { Personnel } & 120,000 \\\text { Indirect costs } & \underline { 150,000 } \\& \underline { \$ 350,000 }\end{array}$$ These costs relate to a product that will be marketed in 2007.It is estimated that these costs will be recouped by December 31, 2009.The equipment has no alternative future use.What is the amount of research and development costs that should be expensed in 2006?

• A)$0.
• B)$200,000.
• C)$270,000.
• D)$350,000.

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