What account should be charged for the $325,000

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Question: Price Company from time to time embarks on a research program when a special project seems to offerpossibilities. In 2024, the company expends $325,000 on a research project, but by the end of 2024 it isimpossible to determine whether any benefit will be derived from it.

What account should be charged for the $325,000, and how should it be shown in the financialstatements?

Additional engineering and consulting costs incurred in 2026 required to advance the design of aproduct to the manufacturing stage total $60,000. These costs enhance the design of the productconsiderably. Discuss the proper accounting treatment for this cost.

Reference no: EM133378409

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