Calculate total amount to be classified as development costs

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Bears Inc. incurred the following costs during the year ending December 31, 2020:

Laboratory research aimed at discovery of new knowledge $ 80,000

Design of new products involving new technology 29,000

Testing of new products 19,000

Construction of research and development facilities 120,000

Instructions

Problem 1: Assuming the 6 specific conditions have been demonstrated, calculate the total amount to be classified as development costs for Bears Inc., either deferred or capitalized, in 2020. Show all your calculation and provide a brief explanation of your rationale.

Reference no: EM132795299

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