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

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Blossom Electric Inc. has the following amounts included in its general ledger at December 31, 2023: Organization costs Purchased trademarks Development phase activities (meet all six development phase criteria) Deposits with advertising agency for ads to promote goodwill of company Excess of cost over fair value of identifiable net assets of acquired subsidiary Cost of equipment acquired for research and development projects; the equipment has an alternative future use Costs of researching a secret formula for a product that is expected to be marketed for at least 20 years Payment for a favourable lease; lease term of 10 years $34,700 Total amount of intangible assets to be reported 18,500 31,500 7,700 81,100 125,300 75,900 14,900 (a) Based on the information provided, calculate the total amount for Blossom to report as intangible assets on its statement of financial position at December 31, 2023. Assume Blossom uses IFRS to prepare its financial statements.
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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. $ _______
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11.
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