Types of costs would not be included

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Reference no: EM132015511

1. Apple, Inc. reported research and development expense of $10,045 million on its 2016 income statement. This expense included many types of costs.

Which of the following types of costs would not be included in the $10,045 million?

A. Salaries and wages for R&D personnel

B. Costs of applying for FDA approval

C. Depreciation on equipment used in experiments

D. Supplies and inventory related to R&D activities and new-product sales

E. None of the above

2. For a gain to be afforded preferential treatment, the asset must be

I. a capital asset

II. sold or exchanged

III. held for at least 6 months

I and II

I and III

II and III

I, I and III

Reference no: EM132015511

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