Research Corp At July 31, 2021, Research Corp

question 28

Multiple Choice

Research Corp., a publicly accountable entity, incurred the following costs in its research and development division: $$\begin{array} { | l | r | r | } \hline & \text { Jan 1 - July 31, 2021 } & \text { Aug 1- Dec. 31, 2021 } \\\hline \text { Materials } & 10,000 & 12,000 \\\hline \text { Labour costs } & 15,000 & 32,000 \\\hline \text { Directly attributable overhead } & 8,000 & 15,000 \\\hline\end{array}$$ At July 31, 2021, 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 2021?

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

---

Definitions:

Electroconvulsive Shock Therapy

A psychiatric treatment in which seizures are electrically induced in anesthetized patients for therapeutic effect.

Anterograde Amnesia

A condition that prevents an individual from forming new memories after the onset of the amnesia.

Retrograde Amnesia

A loss of memory-access to events that occurred or information that was acquired before an injury or the onset of a disease.

Dementia

A broad category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember, affecting a person's daily functioning.