(Solution) - Cressman Company incurred R D costs for various projects in 2013 -(2025 Original AI-Free Solution)

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Cressman Company incurred R&D costs for various projects in 2013 as follows:
Materials used for research ...............................................$ 240,000
Materials used for development............................................160,000
Equipment acquired that will have alternative uses in
Future research projects for 4 years ....................................2,000,000
Personnel costs of employees involved in research .....................600,000
Personnel costs of employees involved in development ...............400,000
Consulting fees paid to outsiders for research ............................20,000
Consulting fees paid to outsiders for development ......................80,000
Indirect costs reasonably allocable for research ........................130,000
Indirect costs reasonably allocable for development .....................70,000
Required:
1. What is the amount of Cressman's R&D expenses for 2013 if it uses U.S. GAAP?
2. How would your answer change if Cressman uses IFRS? Assume that the company can demonstrate that the projects are expected to generate future economic benefits.