What amount should delta report as research

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During 2002, Delta Inc. incurred research and development costs as follows:

Experimental and development costs of a new process patented in December 2002 P250,000

Testing for evaluation of prototypes 300,000

Modification of the formulation of a chemical product 150,000

Research and development costs reimbursable under a contract with Quality Chemicals Corporation 500,000

Problem 1: What amount should Delta report as research and development expense in its income statement for the year ended December 31, 2002?

(a) P 0

(b) P450,000

(c) P700,000

(d) P950,000

Reference no: EM132725718

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