A Computer Company Has $2,500,000 in Research and Development Costs

Multiple Choice

A computer company has $2,500,000 in research and development costs. Before accounting for these costs, the net income of the company is $2,000,000. What is the amount of net income or loss before taxes after these research and development costs are accounted for?

A) $500,000 loss.
B) $2,000,000 net income.
C) $0.
D) Cannot be determined from the information provided.