research and development expense of Soundgarden Co. includes which of the following items: 1) Costs of advertising a newly invented product. 2) Billings received by Soundgarden from Black Hole Sun Co. for research activities performed by Black Hole Sun Co. for Soundgarden. 3) The depreciation on a building used in various R&D projects 4) Billings sent by Soundgarden to Ugly Kid Joe Co. for research activities performed by Soundgarden for Ugly Kid Joe Co. 5) Costs of materials, labor and overhead incurred in generating a patent. The patent was granted to Soundgarden during the period. 6) Overhead costs properly allocated to the research and development activities performed by Soundgarden during the period. 7) Training costs of Soundgarden’s employees who are directly involved in R&D projects. 8) The amortization of patents used in Soundgarden’s research activities.

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 2QE
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The research and development expense of Soundgarden Co. includes which of the following items:

1) Costs of advertising a newly invented product.

2) Billings received by Soundgarden from Black Hole Sun Co. for research activities performed by Black Hole Sun Co. for Soundgarden.

3) The depreciation on a building used in various R&D projects

4) Billings sent by Soundgarden to Ugly Kid Joe Co. for research activities performed by Soundgarden for Ugly Kid Joe Co.

5) Costs of materials, labor and overhead incurred in generating a patent. The patent was granted to Soundgarden during the period.

6) Overhead costs properly allocated to the research and development activities performed by Soundgarden during the period.

7) Training costs of Soundgarden’s employees who are directly involved in R&D projects.

8) The amortization of patents used in Soundgarden’s research activities.

 

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