Aspen, Inc. developed a new horse transport device and incurred research and development costs of $250,000. Rather than continue with their own research, Aspen decided to purchase a patent for a similar design from Vail, Inc. for $350,000. What are the total assets and expenses for these developments

Total assets= $350,000

Total expenses= $250,000

Explanation:

Aspen incorporation developed a new horse transport device

During the period of the research and development of this transport device a lot of costs were incurred

Expenses can be described as the amount of money that is spent by a company inorder to generate profit

In the scenario described above, Aspen incorporation incurred $250,000 during the period of the transport device development

Hence the total amount of expenses is $250,000

Patent can be described as a type of intangible assets that, although this type of assets is a bit hard to estimate it's value, it is still grouped as an asset.

It is a full right that is given to an organisation, it gives them complete control and access to manufacture or produce a particular product for a long time.

In the scenario described above, Aspen purchased an identical design from Vail incorporation for $350,000

Hence the total assets is $350,000

c

explanation: