Research Corp

question 72

Multiple Choice

Research Corp., a publicly accountable entity, incurred the following costs in its research and development division: At July 31, 2012, Research Corp. determined that the project was technically feasible and commercially viable. Research Corp. had sufficient resources and intentions to complete the project and was confident that there was demand in the marketplace for the product. How much, if any, of the costs can be capitalized for fiscal 2012?

• A)$0
• B)$44,000
• C)$59,000
• D)$92,000

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Definitions:

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, coupled with the transfer of protons across a membrane to generate ATP.

ATP Formation

The biochemical process by which cells generate adenosine triphosphate (ATP), a molecule that stores and transfers energy within cells.

Acetate

A salt or ester of acetic acid, often used as a solvent or in making synthetic fibers or plastics.

Ketone Bodies

Metabolic products produced during fatty acid metabolism, used by some tissues as an energy source when glucose is not available.