An entity incurred the following research and developments costs in the current year: Materials used in research and development projects Equipment acquired that will have alternate future use in future research and development projects Depreciation on above equipment Personnel costs of persons involved in research and development projects Consulting fees paid to outsiders for research and development projects Indirect costs reasonably allocable to research and development projects 400,000 2,000,000 500,000 1,000,000 100,000 200,000 What amount of research and development costs should be expensed in the current year?

An entity incurred the following research and developments costs in the current year: Materials used in research and development projects Equipment acquired that will have alternate future use in future research and development projects Depreciation on above equipment Personnel costs of persons involved in research and development projects Consulting fees paid to outsiders for research and development projects Indirect costs reasonably allocable to research and development projects 400,000 2,000,000 500,000 1,000,000 100,000 200,000 What amount of research and development costs should be expensed in the current year?

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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1
In accounting for research and experimental expenditures incurred in 2021, all of the following alternatives are available with the exception of a. expense R&E costs in the year paid or incurred. b. expense R&E costs in the year in which a product or process becomes marketable. c. defer and amortize R&E costs as a ratable deduction over a period of 60 months or more. d. capitalize and write off R&E costs only when the research project is abandoned or is worthless.
Inkwell Co. incurred research and development costs in 2015 as follows: Materials used in research and development projects Equipment acquired that will have alternate future uses in future research and development projects Depreciation for 2015 on above equipment Personnel costs of persons involved in research and development projects Consulting fees paid to outsiders for research and development projects Indirect costs reasonably allocable to research and development projects $ 650,000 3,000,000 500,000 $1,700,000. $2,000,000. $4,700,000. $2,425,000. 750,000 300,000 225,000 $5.425.000 The amount of research and development costs charged to Inkwell's 2015 income statement should be
Sandhill Co. incurred research and development costs in 2021 as follows: Materials used in research and development projects $ 930000 Equipment acquired that will have alternate future uses in future research and development projects 2800000 Depreciation for 2021 on above equipment 466666 Personnel costs of persons involved in research and development 730000 projects Consulting fees paid to outsiders for research and development projects 280000 Indirect costs reasonably allocable to research and development projects 205000 $5411666 The amount of research and development costs charged to Sandhill's 2021 income statement should be O $2126666. O $1940000. O $4740000. O $2611666.
Situation II During 2022, Pearl SA constructed and manufactured certain assets and incurred the following borrowing costs in connecti with those activities. Warehouse constructed for Pearl's own use Special-order machine for sale to unrelated customer, produced according to customer's specifications Inventories routinely manufactured, produced on a repetitive basis Borrowing Costs Incurred The total amount of borrowing cost to be capitalized R$ R$28,200 8,460 7,520 All of these assets required an extended period of time for completion. Assuming the effect of borrowing cost capitalization is material, what is the total amount of borrowing cost to be capitalized?
Virtual Co. incurred research and development costs in 2023 as follows: Materials used in research and development projects $ 450,000 Equipment acquired that will have alternate future uses in future research and development projects 3,000,000 Depreciation for 2023 on above equipment 300,000 Personnel costs of persons involved in research and development projects 750,000 Consulting fees paid to outsiders for research and development projects 300,000 Indirect costs reasonably allocable to research and development projects 225,000 Total $5,025,000 Assume economic viability has not been achieved. What amount of research and development costs should be charged to Virtual’s 2023 income statement?
Subject: accounting
Platteville Corporation has the following account balances at 12/31/20: Amortization expense P 10,000 Trademark 80,000 Research and Development costs 100,000 Patent, net of P30,000 amortization 70,000 What amount should Platteville report for intangible assets on the 12/31/20 statement of financial position? 100,000 150,000 250,000 260,000
An entity reported the following assets at year-end: Franchise - 1,000,000 Computer Software - 1,500,000 Patent - 2,500,000 Customer List - 500,000 Copyright - 700,000 Deposit with advertising agency to promote goodwill - 400,000 Excess of cost over fair value of identifiable net assets of acquired associate - 1,400,000.00 Excess of cost over fair value of identifiable net assets of acquired subsidiary - 4,000,000.00 Trademark - 900,000 Research and development cost - 2,000,000 What total amount should be reported as intangible assets?
W Co. acquired the intangible assets listed below for a total lump sum price of P400,000. Intangible asset Service mark Order and production backlogs In-house research and development Fair value P160,000 120,000 80,000 120,000 How much is the initial measurement of the masthead? Masthead Your answer On January 1, 20x1, M Co. incurred P500,000 in registering a patent. It was initially estimated that the useful life of the asset is 20 years, equal to its legal life. However, on January 1, 20x6, M assessed that the useful life of the patent was only 15 years starting on the date of registration. How much is the amortization expense in 20x6? Your answer
Impairment is defined as a reduction in the value of a company asset, whether fixed or intangible which decline the asset's quality, quantity, or market value. (a) The carrying amount of a machinery is RM525,000. This consists of goodwill of RM75,000, development costs of RM150,000 and machinery of RM300,000. The machinery has a recoverable amount of RM330,000. Calculate the carrying amount of the machinery after the impairment loss has been allocated.
As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount of $46,000 (cost of $62,000; accumulated depreciation of $16,000) may be impaired due to technological obsolescence. Assume that the asset's value in use is determined to be $38,600 and its fair value less costs of disposal (of $2,100) is $41,200. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are estimated to be $44,100. (a1) Compare the accounting for impairment of the equipment under IFRS versus ASPE IFRS Impairment loss ASPE