@NJ – also, thanks for your explanation – I am adding that as a fact nugget to my notes! Very good explanation. I always looked for the middle, but hearing the logic helps so much!
On January 1, Year 1, Jambon purchased equipment for use in developing a new product. Jambon uses the straight-line depreciation method. The equipment could provide benefits over a 10-year period. However, the new product development is expected to take 5 years, and the equipment can be used only for this project. Jambon’s Year 1 expense equals
I'm quitting in 30 minutes too. My little ones don't care how late mommy stays up. For some reason the baby still wants to be let out of the crib in the morning and they all want breakfast. How dare they?! Let's make this 30 minutes count.
The costs of materials, equipment, or facilities that are acquired or constructed for a particular R&D project and that have no alternative future uses and therefore no separate economic values are R&D costs when incurred. R&D costs are expensed in full when incurred.
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