Cozy Inc. incurred and paid the following costs during the year ended December 31, 2021: Laboratory research aimed at discovery of new knowledge $200,000 Costs of testing prototype and design modifications (economic viability not achieved) 45,000 Quality control during commercial production, including routine testing of products 270,000 Construction of research facilities having an estimated useful life of 6 years but no alternative future use 360,000 The journal entry for the total amount to be classified and expensed as research and development in 2021 is:
Cozy Inc. incurred and paid the following costs during the year ended December 31, 2021: Laboratory research aimed at discovery of new knowledge $200,000 Costs of testing prototype and design modifications (economic viability not achieved) 45,000 Quality control during commercial production, including routine testing of products 270,000 Construction of research facilities having an estimated useful life of 6 years but no alternative future use 360,000 The journal entry for the total amount to be classified and expensed as research and development in 2021 is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cozy Inc. incurred and paid the following costs during the year ended December 31, 2021:
|
Laboratory research aimed at discovery of new knowledge |
$200,000 |
|
Costs of testing prototype and design modifications (economic viability not achieved) |
45,000 |
|
Quality control during commercial production, including routine testing of products |
270,000 |
|
Construction of research facilities having an estimated useful life of 6 years but no alternative future use |
360,000 |
The
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