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The present value of the interest is

10) Which of the following would be considered research and
development costs?

11) On January 1, 2015, Evans Company granted Tim Telfer,
an employee, an option to buy 3,000 shares of Evans Co. stock
for $25 per share, the option exercisable for 5 years from date of
grant. Using a fair value option pricing model, total
compensation expense is determined to be $22,500. Telfer
exercised his option on September 1, 2015, and sold his 1,000
shares on December 1, 2015. Quoted market prices of Evans Co.
stock during 2015 were

January 1

$25 per share

September 1

$30 per share