Conceptual Question Identify whether or not each of the following items should be capitalized as intangible assets from the following list. Explain your reason with relevant accounting standard. Capitalised Not capitalized Employment costs of staff conducting research activities Cost of constructing a working model of a new product License purchased to permit production and sale of a product for ten years

Conceptual Question Identify whether or not each of the following items should be capitalized as intangible assets from the following list. Explain your reason with relevant accounting standard. Capitalised Not capitalized Employment costs of staff conducting research activities Cost of constructing a working model of a new product License purchased to permit production and sale of a product for ten years

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter3: Setting Up A New Company

Section: Chapter Questions

Problem 1.2C

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Inclusion in Property, Plant, and Equipment Guthrie Inc. must determine whether the following items are included in property, plant, and equipment: a. idle equipment awaiting sale b. machinery kept on hand and used only when other machinery breaks c. land held for investment d. the right to publish a literary work e. progress payments on a building being constructed by a contractor f. fully depredated assets still being used g. expenditures to improve leased property h. equipment leased to others i. purchase of an asset with an expected life of 9 months j. obligation to remove leasehold improvement at the termination of a lease Required: 1. Indicate which items are included in the cost of property, plant, and equipment and which items are excluded from the cost of property, plant, and equipment. 2. Next Level For each item excluded from property, plant, and equipment, explain why it was excluded.
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) A piece of equipment is purchased for $110,000 and has an estimated salvage value of $10,000 at the end of the recovery period. Prepare a depreciation schedule for the piece of equipment using the straight-line method with a recovery period of seven years.
takeAssign SessionLocator assign... A 合 Computer equipment was acquired at the beginning of the year at a cost of $50,800 that has an estimated residual value of $4,300 and an estimated useful life of 5 years. a. Determine the depreciable cost. b. Determine the straight-line rate. % c. Determine the annual straight-line depreciation. $ Previous Next>
Distinguishing capital expenditures from revenue expenditures Consider the following expenditures: Classify each of the expenditures as a capital expenditure or a revenue expenditure related to machinery.
Hilarious Company provided the following data pertaining to machinery on the date of revaluation: CostReplacement cost Machinery 4, 500, 000 7, 200, 000 Accumulated depreciation 900, 000 Age of asset 3 years Revised Life of the asset 10 years Required: Appreciation or revaluation increase Carrying amount Depreciated replacement cost Revaluation surplus What is the original life of the asset? Prepare the journal entry to record the revaluation Prepare the entry to record the annual depreciation subsequent to revaluation Prepare the entry to record the piecemeal realization of the revaluation surplus
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B As the recently appointed auditor for Pharoah Corporation, you have been asked to examine selected accounts before the six-month financial statements of June 30, 2023, are prepared. The controller for Pharoah mentions that only one account is kept for intangible assets. The entries in Intangible Assets since January 1, 2023 are as follows INTANGIBLE ASSETS Jan 4 5 Feb. 11 Apr 30 June 1 30 Research costs Legal costs to obtain patent Payment of seven months rent on property leased by Pha Proceeds from issue of common shares Promotional expenses related to start-up of business Development stage costs (meet all six development stage criterial Start-up costs for first six months of operations Account Titles and Explanation Research and Development Expense Intangibila Asses-Pate Rent pens Prisl Advertising Expense Income Summary Operating Expens Notes Parable Interest Expe (To correct intangible asset account) Prepare the journal entry or entries needed to correct this account Allocat…
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