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

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Definitions:

Salivary Glands

Exocrine glands located around the mouth that produce saliva, which begins the process of digestion and helps maintain oral health.

Basement Membrane

A thin, fibrous extracellular matrix that separates epithelial and endothelial cells from underlying connective tissue.

Connective

Referring to connective tissue in the body, which supports, binds together, and protects organs, including bones, tendons, and fat.

Nervous

The nervous system is the part of an organism that coordinates its actions and sensory information by transmitting signals to and from different parts of its body.