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Company J incurs the following costs:

(a) Construction of a building to be used for both R&D projects and other projects

(b) Purchase of a machine to be used exclusively for the creation of a prototype for a new product

(d) Same as the previous case, except that the salaries are billable to Science Corp.

(e) Legal fees to obtain a patent on a new heart machine

(f) Market research fees to determine selling price of a new product

(g) Costs of testing a prototype

(h) Engineering costs incurred to advance a prototype to the full production stage

(i) Cost of routine design of tools and jigs

Determine for each of the above if it is to be capitalized or expensed.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91886608

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