AstroTech Semiconductor incurred the following costs in 2021 related to a new product design: Research for new semiconductor design Development of the new product Legal and filing fees for a patent for the new design $3,720,000 906, 000 115, 000 $4,741,000 Total The development costs were incurred after technological and commercial feasibility was established and after the future ec benefits were deemed probable. The project was successfully completed, and the new product was patented before the er 2021 fiscal year Required: 1 Calculate the amount of research and development expense (R&D) AstroTech should eport in its 2021U.S. GAAP incom related to this project. 2. Repeat Requirement 1 assuming that Astroledh prepates its financial statements according to International Einancial Rep Standards (IFRS). Research and development expense unde U S. GAAP Research and development expense under IFRS

AstroTech Semiconductor incurred the following costs in 2021 related to a new product design: Research for new semiconductor design Development of the new product Legal and filing fees for a patent for the new design $3,720,000 906, 000 115, 000 $4,741,000 Total The development costs were incurred after technological and commercial feasibility was established and after the future ec benefits were deemed probable. The project was successfully completed, and the new product was patented before the er 2021 fiscal year Required: 1 Calculate the amount of research and development expense (R&D) AstroTech should eport in its 2021U.S. GAAP incom related to this project. 2. Repeat Requirement 1 assuming that Astroledh prepates its financial statements according to International Einancial Rep Standards (IFRS). Research and development expense unde U S. GAAP Research and development expense under IFRS

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Denger
47
Proton Corporation incurred the following costs in 2022: Acquisition of R&D equipment with a useful life of 4 years in R&D projects P500,000 Start-up costs incurred when opening a new plant 140,000 Advertising expense to introduce a new product 700,000 Engineering costs incurred to advance a product to full production stage (economic viability not achieved) 400,000 What amount should Proton record as research & development expense in 2022? O P1,040,000 O P 525,000 O P 640,000 O P 900,000
Romo Company spent $190,000 developing a new process, $45,000 in legal fees to obtain a patent, and $91,000 to market the process that was patented, all in the year 2020. How should these costs be accounted for in 2020?
During 2021, Grouper Corporation spent $152,640 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2021, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $28,080 related to the patent were incurred as of October 1, 2021. (a) Your answer is partially correct. Prepare all journal entries required in 2021 and 2022 as a result of the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record entries in the order displayed in the problem statement.) Date 2021 2021 2021 Account Titles and Explanation Research and Development Expense Cash (To record research and development expenses) Legal Fees Expense Cash (To record legal expenses) Amortization Expense Debit 152640 28080…
Consider the following information from a company's records for 2020: Materials used in research and development projects $4,500 Equipment acquired that will have alternative future uses in future R&D projects for five years 1,500 Personnel costs of employees involved in R&D projects 5,500 Consulting fees paid to outsiders for R&D projects 2,800 Indirect costs reasonably allocable to R&D projects 250 Legal fees associated with registration of a patent resulting from a 2020 R&D project 2,500 Required:Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income. $ _______
Cozy Inc. incurred and paid the following costs during the year ended December 31, 2021: Laboratory research aimed at discovery of new knowledge $200,000 Costs of testing prototype and design modifications (economic viability not achieved) 45,000 Quality control during commercial production, including routine testing of products 270,000 Construction of research facilities having an estimated useful life of 6 years but no alternative future use 360,000 The journal entry for the total amount to be classified and expensed as research and development in 2021 is:
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
Rover Corporation incurred the following costs in 2022: Acquisition of R&D equipment with a useful life of 4 years in R&D projects Start-up costs incurred when opening a new plant Advertising expense to introduce a new product Engineering costs incurred to advance a product to full 400,000 production stage (economic viability not achieved) What amount should Rover record as research & development expense in 2022? P 640,000 P 900,000 P1,040,000 O P 525,000 P500,000 140,000 700,000
On January 3, 2015, the Pomelo Company spent P480,000 to apply for and obtain a patent on a newly developed product. The patent had an estimated useful life of 10 years. During 2017, the company spent P90,000 in successfully prosecuting an attempted infringement of the patent. In the first week of 2020, the company incurred additional costs of P200, 000 relevant to the patent. It is expected that future economic benefits will flow to the enterprise as a result of this expenditure through cost savings and the asset’s use is estimated to be extended by additional 5 years. How much is the patent amortization for the year 2020?
During 2021, Culver Corporation spent $169,920 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2021, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $45,360 related to the patent were incurred as of October 1, 2021.
On September 10, 2020, Vaughn Manufacturing incurred the following costs for one of its printing presses: Purchase of attachment $58500 Installation of attachment 5400 Replacement parts for renovation of press 15200 Labor and overhead in connection with renovation of press 6500 Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized? $85600. $0 $79100. $70400.