Testbank Multiple Choice Question 112 Crane Co. incurred research and development costs in 2021 as follows: Materials used in research and development projects $ 890000 Equipment acquired that will have alternate future uses in future research and development projects 2400000 Depreciation for 2021 on above equipment 400000 Personnel costs of persons involved in research and development projects 690000 Consulting fees paid to outsiders for research and development projects 240000 Indirect costs reasonably allocable to research and development projects 165000 $4785000 The amount of research and development costs charged to Crane's 2021 income statement should be $1820000. $1980000. $2385000. $4220000.

FINANCIAL ACCOUNTING
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Testbank Multiple Choice Question 112
Crane Co. incurred research and development costs in 2021 as follows:
$ 890000
Materials used in research and development projects
Equipment acquired that will have alternate future uses in future research
and development projects
2400000
Depreciation for 2021 on above equipment
400000
Personnel costs of persons involved in research and development projects
690000
Consulting fees paid to outsiders for research and development projects
240000
Indirect costs reasonably allocable to research and development projects
165000
$4785000
The amount of research and development costs charged to Crane's 2021 income statement should be
$1820000.
$1980000.
$2385000.
$4220000.
Transcribed Image Text:Testbank Multiple Choice Question 112 Crane Co. incurred research and development costs in 2021 as follows: $ 890000 Materials used in research and development projects Equipment acquired that will have alternate future uses in future research and development projects 2400000 Depreciation for 2021 on above equipment 400000 Personnel costs of persons involved in research and development projects 690000 Consulting fees paid to outsiders for research and development projects 240000 Indirect costs reasonably allocable to research and development projects 165000 $4785000 The amount of research and development costs charged to Crane's 2021 income statement should be $1820000. $1980000. $2385000. $4220000.
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