According Vietnam Audit Standards8.2 Jason Pharma incurred the following cost in this year related to a new drug:-Research for new formular: $2.425.000-Development of a new formula: $1.600.000-Legal and filing fees for a patent for the new formular: $60.000The development costs were incurred after technological and commercial feasibility was established andafter the future economic benefits were deemed probable. The project was completed and the new drugwas patented before year end.Required: Caculate the amount of expense (reported in the IS) and asset arised (reported in the SOFP) inthis activity.

This question deals with the Vietnam accounting standard 4 "Intangible fixed assets" As per…

Answered: According Vietnam Audit Standards 8.2…

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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10. Batangas State University is purchasing a new queuing system for its service improvement in Registrar’s office. The table that follows list the relevant cost itemsfor this purchase. The operating cost for the new system is expected to be five (5years). The salvage value for depreciation purposes is equal to 25% of the hardwarecost. Cost item CostHardware $160,000Training $15,000Installation $15,000 a. What is the book value of the device at the end of three years if the straight linemethod (SLM) is used?b. Supposed that after depreciating the device for two (2) years with the SLM,the firm decides to switch to the double-declining balance depreciationmethod for the remainder of the device’s useful life. What is the device’s bookvalue at the end of four years?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
2 Required information [The following information applies to the questions displayed below.) Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Testing and modification of the prototype Development of a prototype device t Legal fees for patent application Legal fees for successful defense of the new patent Total $ 3,400,000 1,080,000 540,000 340,000 74,000 34,000 $ 5,468,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized. 2. How much should Satellite Systems report as research and development expense in the income statement? Research and development expense
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Required information [The following information applies to the questions displayed below] Dow Chemical Company provides chemical, plastic, and agricultural products and services to various consumer markets The following excerpt is taken from the disclosure notes of Dow's annual report DOW CHEMICAL Notes to the Financial Statements (excerpt) Dow Chemical had accrued obligations of $381 million for environmental remediation and restoration costs, including $40 million for the remediation of Superfund sites. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Company has accrued liabilities, although the ultimate cost with respect to these particular matters could range up to twice that amount. Inherent uncertainties exist in these estimates primarily due to unknown conditions, changing governmental regulations and legal standards regarding liability. and evolving technologies for handling site remediation and…
A company's research department incurred $1,000,000 in material, labor, and overhead costs to construct a prototype of a new product and $100,000 to test and modify the prototype. Which of the following statements correctly describes the accounting treatment of prototype costs incurred by the company? 1. Capitalize $1,100,000 and amortize it over the expected sales life of the new product 2. Capitalize $1,100,000 and amortize it over the life of the prototype. 3. Capitalize $1,000,000 and amortize it over the life of the prototype and expense $100,000 as incurred. 4. Expense $1,100,000 as incurred.
During 2020, BLACKPINK INC. incurred costs to develop and produce a routine, low-risk computer software product as follows: • Completion of detailed program design or working model- 1,000,000 • Cost incurred for coding and testing to establish technological feasibility- 200,000 • Other coding costs after the establishment of technological feasibility- 2,000,000 • Other testing costs after the establishment of technological feasibility- 1,500,000 • Costs of producing product masters for training materials- 2,500,000 • Duplication of computer software and training materials from product master- 3,000,000 • Production overhead- 1,000,000 • Packaging product- 500,000 • Administrative overhead- 750,000 • Promotional cost of the finished software- 200,000 • Abnormal amount of wasted materials and labor costs- 250,000 In the December 31, 2020 balance sheet, what amount should be reported as inventory?
11.
This question relate with MFRS 116 (Property, Plant and Equipment)
Required information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $222,000 including installation. The company estimates that the equipment will have a residual value of $21,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows: Year 1 Hours Used 2,700 2 1,500 3 1,600 4 2,400 5 2,200 6 1,600 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
Candalibra Company incurred the following costs during the year ended December 31, 2018: Laboratory research aimed at discovery of new knowledge $300,000 Costs of testing prototype and design modifications (economic viability not achieved) 55,000 Quality control during commercial production, including routine testing of products 210,000 Construction of research facilities having an estimated useful life of 12 years but no alternative future use 440,000 What is the total amount to be classified and expensed as research and development in 2018 under U.S. GAAP? 79

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