Suppose a company spends $100,000 in the current year to research and develop a safety device for motorcycles. By the end of the year, the company estimates that the new safety device has an 80% chance of generating $300,000 in revenues from sales to customers over the next five years. For what amount would Research and Development Expense be reported in the current year?

$100,000

Explanation:

Data provided in the question

Spending amount for research and development = $100,000

Chance = 80%

Revenues generated = $300,000    

So for reporting the Research and Development Expense we considered only the spending amount for research and develop a safety device for motorcycles i.e $100,000

Hence, the other information which is given is not relevant. Therefore, ignored it