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Required: How much, if any, of the costs can be capitalized for fiscal 2021?

Required: How much, if any, of the costs can be capitalized for fiscal 2021?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Short answer question 1 Research Corp., a publicly accountable entity, incurred the following costs in its research and development division: Jan 1 - July 31, Aug 1- Dec. 31, 2021 2021 Materials 10,000 12,000 Labour costs 15,000 32,000 Directly attributable overhead 8,000 15,000 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. Measurement of amounts allocated above are reliable. Required: How much, if any, of the costs can be capitalized for fiscal 2021?
Transcribed Image Text:Short answer question 1 Research Corp., a publicly accountable entity, incurred the following costs in its research and development division: Jan 1 - July 31, Aug 1- Dec. 31, 2021 2021 Materials 10,000 12,000 Labour costs 15,000 32,000 Directly attributable overhead 8,000 15,000 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. Measurement of amounts allocated above are reliable. Required: How much, if any, of the costs can be capitalized for fiscal 2021?
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