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Question
Pharoah Corporation incurred the following costs in 2018:
Acquisition of R&D equipment with a useful life of 4 years in R&D projects $640,000 Start-up costs incurred when opening a new plant 132,000 Advertising expense to introduce a new product 540,000 Engineering costs incurred to advance a product to full production stage 448,000
What amount should Pharoah record as research & development expense in 2018?
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