Muharraq Co. paid the following different costa in 2020:1. S1,200,000 to acquire a machine to be used in the RAD projects The machine has a 6-year useful life (Muharaq Co. started wing the machine on 1 Jamuary 2020 and a igha ledepreciation method is applied)2. $750,000 for construction costs incurred to open a new plant.3. $230,000 for salaries expenses to the workers who investigate a new formula.4. $310,000 for material and equipment used in research and development project5. $270,000 for advertising expenses to the new products6. S190,000 for consultation services provided by Manama Co. during the rescarch procesRequired:How much Muharraq Co. should record as Research & Development expense in 20207 (Show your calculations)

To provide new goods or services, companies often spent monies on the research of new products and…

1. S1,200,000 to acquire a machine to be used in the RAD projects The machine han a6 year useful life (Muhan Co stated wing the machine on1 Jay 200 ndaigh l depreciation method is applied) 2. $750,000 for construction costs incurred to open a new plant. 3. $230,000 for salaries expenses to the workers who ivestigate a ew formuls 4 5310,000 for material and equipment used in research and development project 5. $270,000 for advertising expenses to the new products 6 $190,000 for consultation services provided by Manama Co during the rescarch process Required: How much Muharraq Co. should record as Research & Development expense in 20207 (Show your calculations)

1. S1,200,000 to acquire a machine to be used in the RAD projects The machine han a6 year useful life (Muhan Co stated wing the machine on1 Jay 200 ndaigh l depreciation method is applied) 2. $750,000 for construction costs incurred to open a new plant. 3. $230,000 for salaries expenses to the workers who ivestigate a ew formuls 4 5310,000 for material and equipment used in research and development project 5. $270,000 for advertising expenses to the new products 6 $190,000 for consultation services provided by Manama Co during the rescarch process Required: How much Muharraq Co. should record as Research & Development expense in 20207 (Show your calculations)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please find attached Question
A-3
The Open Grill incurred the following costs in acquiring a new piece of land: Purchase price $80,000 Commissions 4,800 Liability insurance for the first year 1,200 20,000 Cost of removing existing building Sale of salvaged materials (4,000) Total costs $102,000 What is the total capitalized cost of the land? Multiple Choice O O $102,000. $80,000. $100,800. $106,000.
A7
Current Attempt in Progress Marigold Corp. acquires land for $100000 cash. Additional costs are as follows: Removal of shed Filling and grading Residual value of lumber from shed Paving of parking lot Closing costs Type here to search $430 $104890. O $100000. O$104460. O $120690. 3300 Marigold will record the cost of the land as 150 15500 1310 C P 5 59 -4°C Clear 4) ENG 10: 2022
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AI Maha Company purchased equipment and had the following costs: Repairing of roof RO 14,750 Insurance during transit 570 Sales taxes 2,870 Cash price 25,250 New parking lot 23,000 Property taxes 4,500 Installation and testing 960 AI Maha will record the acquisition cost of the equipment as: Select one: O a. RO 34,150. O b. None of the answers are correct O c RO 67,850. O d. RO 29,620. O e. RO 44,850.
7. A corporation purchased equipment for P53,000.00 and paid P1,500 for freight and delivery charges to the job site. The equipment has a normal life of 10 years with a trade-in value of P5,000.00 against the purchase of a new equipment at the end of the life. Determine the annual depreciation cost by sinking fund method at 6% interest rate. 8. An equipment was bought for P30,000 six years ago. It will have a salvage value of P3,000 four years from now. It is sold now for P8,000. What is the total depreciation and the book value now? Use Sinking Fund Method at 6%? 9. An equipment cost P7,350 has a life of 8 years and has a salvage value of P350 at the end of 8 years. Determine its book value at the end of 4 years using Constant-Percentage of Declining Value..
3
1. Use the following information about a newly acquired plant asset for cash. Record the information in a GJ form List Price $37,000 Sales Tax 2, 500 Freight Charges 2,800 Installation 700 Repairs due to breakage while unpacking equipment 400 2. On January 1, 2000, a piece of equipment was purchased at a cost of $26,000 and has an estimated salvage of $4,000. The estimated useful of the equipment is five years. Calculate the depreciation for 2000 & 2001 using the following methods: a. The straight-line method b. The double declining balance method