Respuesta :
Answer:
Total R&D Expense = 1040000 USD to be reported in 2021 income statement.
Explanation:
First of all, let me arrange this data in a quite presentable way to facilitate you.
1. Salaries and wages for lab research = 400,000 USD
2. Materials Used in R&D projects = 200,000 USD
3. Purchase of equipment = 900,000 USD
4. Fees paid to third parties for R&D projects = 320,000 USD
5. Patent filing and legal costs for a developed product = 65,000 USD
6. Salaries, wages, and supplies for R&D work performed for another company under a contract = 350,000 USD
Total Cost = 2,235,000 USD
Note: Depreciation for 2021 is 120,000 USD.
Now, we have to list out different costs included in Research and Development Expenses to be included in the income statement.
For R&D expenses, we need to look for costs that are directly related to R&D and add up those costs to calculate the R&D Expense that Delaware should report in its 2021 income statement.
Following cost components will be added together for the Research and Development Expenses:
1. Depreciation For 2021 = 120,000 USD
2. Materials Used in R&D projects = 200,000 USD
3. Fees paid to third parties for R&D projects = 320,000 USD
4. Salaries and wages for lab research = 400,000 USD
Total R&D Expense = 120,000 + 200,000 + 320,000 USD + 400,000 USD
Total R&D Expense = 1040000 USD to be reported in 2021 income statement.
The Delaware Company should report $1,040,000 as research and development expense in its 2021 income statement.
Data and Calculations:
Salaries and wages for lab research = $400,000
Materials used in R&D projects = 200,000
Fees to third parties 320,000
Depreciation of Equipment for 2021 120,000
Total expenses for income statement $1,040,000
Thus, the amount of research and development expense that Delaware should report in 2021 is $1,040,000.
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