A Computer Company Has $2,000,000 in Research and Development Costs

Multiple Choice

A computer company has $2,000,000 in research and development costs. Before accounting for these costs, the net income of the company is $1,600,000. What is the amount of net income or loss after these R & D costs are accounted for?

A) $400,000 loss
B) $1,600,000 net income
C) $0
D) Cannot be determined from the information provided.