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15 August, 17:33

A computer company had $3,000,000 in research and development costs. Before recording these costs, the net income of the company was $3,400,000. What is the net income or loss after these costs have been properly accounted for

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  1. 15 August, 20:03
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    Net income of the company accounted for $400,000

    Explanation:

    Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.

    The net income or loss of the company accounted for is computed as:

    Net Income or Loss = Net Income - Research and Development cost

    where

    Net Income amounts to $3,400,000

    Research and Development cost amounts to $3,000,000

    So, putting the values above:

    Net Income or loss = $3,400,000 - $3,000,000

    Net Income = $400,000
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