During the current year, Beta Motor Co. incurred the following costs related to a new solar-powered car: Salaries of laboratory employees researching how to build the new car | $250,000 | Legal fees for the patent application for the new car | 20,000 | Engineering follow-up during the early stages of commercial production
(the follow-up occurred during the current year) | 50,000 | Marketing research to promote the new car | 30,000 | Design, testing, and construction of a prototype | 400,000 |
What amount should Beta Motor report as research and development expense in its income statement for the current year?
|
a. | $720,000 | |
b. | $750,000 | |
c. | $650,000 | |
d. | $250,000 |
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