Reference no: EM132795303
During 2020, Falcons Ltd. incurred the following costs:
Research Expense ........................................................ $ 360,000
Routine design of tools, jigs, molds, and dies ...................... 250,000
Modification of the formulation of a process ....................... 610,000
Development services performed by suppliers for Falcons ....... 325,000
Instructions
Problem 1: Assuming the 6 specific conditions have been demonstrated, calculate the total amount to be classified as development costs for Falcons Ltd., either deferred or capitalized, in 2020. Show all your calculation and provide a brief explanation of your rationale