Cromartie Ltd, prepares its financial statements according to International Financial Reporting Standards. During 2021 the company incurred $1,277,000 in research expenditures to develop a new product. An additional $788,000 in development expenditures were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new product was patented before the end of the 2021 fiscal year. Sale of the product began in 2020. What amount of the above expenditures would Cromartie expense in its 2021 income statement?

Cromartie Ltd, prepares its financial statements according to International Financial Reporting Standards. During 2021 the company incurred $1,277,000 in research expenditures to develop a new product. An additional $788,000 in development expenditures were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new product was patented before the end of the 2021 fiscal year. Sale of the product began in 2020. What amount of the above expenditures would Cromartie expense in its 2021 income statement?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

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Cromartie Ltd. prepares its financial statements according to International Financial Reporting Standards. During 2021 the company incurred
$1,277,000 in research expenditures to develop a new product. An additional $788,000 in development expenditures were incurred after
technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was
successfully completed and the new product was patented before the end of the 2021 fiscal year. Sale of the product began in 2020. What
amount of the above expenditures would Cromartie expense in its 2021 income statement?
Multiple Choice
$0.
$2,065,000.
$1.277.000.
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Multiple Choice
$0.
$2,065.000
$1.277.000
5788.000.
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