How much of the building cost should they expense

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Reference no: EM133690394

Question: Hopper Industries plans to spend $4.9 million to research and develop a new prototype production process. If the prototype is successful, they will install the new process at their eight manufacturing sites. The research facility will cost $3.2 million to build. At the end of the project, the prototype and building will be abandoned, but the company will maintain ownership of the property. They expect the project to be complete in four years, including six months spent building the research facility. How much of the building cost should they expense in the first year of the project?

Reference no: EM133690394

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