MaBelle Corporation Incurred the Following Costs in 2008 What Amount Should MaBelle Record as Research & Development Expense

question 10

Multiple Choice

MaBelle Corporation incurred the following costs in 2008: $\begin{array} { l } \text {Acquisition of R\&D equipment with a useful life of }&\\ \text { 4 years in \( R \& D \) projects}&\$600,000\\ \text {Start-up costs incurred when opening a new plant }&140,000\\ \text { Advertising expense to introduce a new product}&700,000\\ \text { Engineering costs incurred to advance a product to full}&\\ \text {production stage }&350,000\\\end{array}$
What amount should MaBelle record as research & development expense in 2008?

• A)$500,000
• B)$640,000
• C)$950,000
• D)$1,340,000

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