Research and Development:
The Thomas Company is in the process of developing a
revolutionary new product. A new division of the company was formed
to develop, manufacture, and market this product. As of year‐end
(December 31, 2017), the product has not been manufactured for
resale; however, a prototype unit was built and is in
operation.
Throughout 2017 the division incurred certain costs. These costs
include design and engineering studies, prototype manufacturing
costs, administrative expenses (including salaries of
administrative personnel), and...