A Computer Company Has $4000000 in Research and Development Costs

question 179

Multiple Choice

A computer company has $4000000 in research and development costs.Before accounting for these costs the net income of the company is $4800000.What is the amount of net income or loss before taxes after these research and development costs are accounted for?

• A)$800000 net loss.
• B)$4000000 net income.
• C)$800000 net income.
• D)Cannot be determined from the information provided.

Recognize and correctly classify costs associated with the acquisition and preparation of tangible assets for use (Incidental costs, installation costs, freight costs).

Identify and differentiate between depreciable and non-depreciable assets.

Grasp the concept and accounting treatment of depreciation, including various depreciation methods and their impact on financial statements.

Learn the proper accounting for routine and extraordinary costs incurred in relation to tangible assets.

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Definitions:

Anode

An electrode through which conventional current flows into a polarized electrical device; in electrolysis, it is the positively charged electrode.

Battery

A device used to convert chemical energy into electric energy. A group of voltaic cells connected together in a series or parallel connection.

Electromotive

Related to the generation or production of electromotive force or voltage.

Ionic Series

In chemistry, a series that ranks ions based on their ability to displace other ions in reactions, often related to their reactivity or electrode potentials.