C is corrent. Research and development costs (R&D costs) are defined in ASC Topic 730. It goes on to provide detailed lists of examples of activities that typically would be included in R&D costs and expensed and excluded from R&D costs and possibly capitalized. Among those items listed in ASC Topic 730 as being part of R&D costs are modification of the design of a product or process ($135,000), design of tools, jigs, molds, and dies involving new technology ($170,000) and laboratory research aimed at discovery of a new knowledge ($215,000). These three R&D expenses total $520,000. Included in the items listed in ASC Topic 730 as not being part of R&D costs are troubleshooting breakdowns during production ($150,000) and periodic design changes to existing products ($185,000).
A is incorrect. Research and development costs (R&D costs) are defined in ASC Topic 730. It goes on to provide detailed lists of examples of activities that typically would be included in R&D costs and expensed and excluded from R&D costs and possibly capitalized. Among those items listed in ASC Topic 730 as being part of R&D costs are modification of the design of a product or process ($135,000), design of tools, jigs, molds, and dies involving new technology ($170,000) and laboratory research aimed at discovery of a new knowledge ($215,000). These three R&D expenses total $520,000. Included in the items listed in ASC Topic 730 as not being part of R&D costs are troubleshooting breakdowns during production ($150,000) and periodic design changes to existing products ($185,000).
A is incorrect. Research and development costs (R&D costs) are defined in ASC Topic 730. It goes on to provide detailed lists of examples of activities that typically would be included in R&D costs and expensed and excluded from R&D costs and possibly capitalized. Among those items listed in ASC Topic 730 as being part of R&D costs are modification of the design of a product or process ($135,000), design of tools, jigs, molds, and dies involving new technology ($170,000) and laboratory research aimed at discovery of a new knowledge ($215,000). These three R&D expenses total $520,000. Included in the items listed in ASC Topic 730 as not being part of R&D costs are troubleshooting breakdowns during production ($150,000) and periodic design changes to existing products ($185,000).
D is incorrect. Research and development costs (R&D costs) are defined in ASC Topic 730. It goes on to provide detailed lists of examples of activities that typically would be included in R&D costs and expensed and excluded from R&D costs and possibly capitalized. Among those items listed in ASC Topic 730 as being part of R&D costs are modification of the design of a product or process ($135,000), design of tools, jigs, molds, and dies involving new technology ($170,000) and laboratory research aimed at discovery of a new knowledge ($215,000). These three R&D expenses total $520,000. Included in the items listed in ASC Topic 730 as not being part of R&D costs are troubleshooting breakdowns during production ($150,000) and periodic design changes to existing products ($185,000).
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