Answer:
$800,000 loss
Explanation:
The Research and development cost is recorded as an expense in the income statement. Before considering the income statement the net income of the company is $2,000,000 it means the research and development expense has not been charged yet. After charging the expense against the income for the period will be:
Net income = Net income beofre R&D cost - R&D cost = $2,000,000 - $2,800,000 = -$800,000
Hence, there is a loss of $800,000 if we consider the R&D cost.
