New Ventures Corp At April 30, 2021, New Ventures Determined That the Project

question 25

Multiple Choice

New Ventures Corp., a publicly accountable entity, incurred the following costs in its research and development division: $$\begin{array} { | l | r | r | } \hline & \text { Jan 1-April 30, 2021 } & \text { May 1- Dec. 31, 2021 } \\\hline \text { Materials } & 10,000 & 12,000 \\\hline \text { Labour costs } & 15,000 & 32,000 \\\hline \text { Directly attributable overhead } & 8,000 & 15,000 \\\hline \text { Indirect overhead } & 5,000 & 7,000 \\\hline\end{array}$$ At April 30, 2021, New Ventures determined that the project was technically feasible and commercially viable. New Ventures 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)$59,000
• C)$66,000
• D)$92,000

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