During 2014, Robby, Inc incurred the following costs: Research and development services performed by Tronic Company for Robby ................................ $125,000 Testing for evaluation of new products ............... 150,000 Laboratory research aimed at discovery of new knowledge 187,500 In its income statement for the year ended December 31 . 2014, Robby should report research and

development expense of
a. $462,500.
b. $312,500.
c. $150,000.
d. $125,000.


A

Business

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