EXERCISE 11–1 Indicate whether the items below are to be capitalized as an intangible asset or expensed. Which account(s) would each item be recorded to? Salaries of research staffCosts to test prototypesBorrowing costs for development of a qualifying intangible assetExecutive salaries for time spent on development of an intangible assetCosts to launch a new productPurchase cost of a patent from a third partyProduct research costsCosts internally incurred to create goodwillLegal costs to successfully defend a patentPurchase price of new softwareTraining costs for new softwareDirect costs of special programming needed when purchasing new softwareCosts incurred in forming a corporation for purposes of commercializing a new productOperating losses incurred in the start-up of a business to manufacture a patented produceThe purchase cost of a franchiseThe cost of developing a patentThe cost of purchasing a patent from an inventorLegal costs incurred in securing a patentThe cost of purchasing a copyrightProduct development costsConsulting fees paid to a third party for advice on a research project 418 Intangible Assets and GoodwillThe cost of an annual update on payroll softwareInterest or borrowing costs specifically identifiable with an internally developed intangible assetMaterials consumed in the development of a product at the manufacturing stage for an IFRS company y. Materials consumed in research projectsGeneral borrowing costs on the company’s line of credit

Intangible assets can only be recognized if they are identifiable and have a cost which can be…

Answered: EXERCISE 11–1 Indicate whether the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

EXERCISE 11–1 Indicate whether the items below are to be capitalized as an intangible asset or expensed. Which account(s) would each item be recorded to?

Salaries of research staff
Costs to test prototypes
Borrowing costs for development of a qualifying intangible asset
Executive salaries for time spent on development of an intangible asset
Costs to launch a new product
Purchase cost of a patent from a third party
Product research costs
Costs internally incurred to create goodwill
Legal costs to successfully defend a patent
Purchase price of new software
Training costs for new software
Direct costs of special programming needed when purchasing new software
Costs incurred in forming a corporation for purposes of commercializing a new product
Operating losses incurred in the start-up of a business to manufacture a patented produce
The purchase cost of a franchise
The cost of developing a patent
The cost of purchasing a patent from an inventor
Legal costs incurred in securing a patent
The cost of purchasing a copyright
Product development costs
Consulting fees paid to a third party for advice on a research project 418 Intangible Assets and Goodwill
The cost of an annual update on payroll software
Interest or borrowing costs specifically identifiable with an internally developed intangible asset
Materials consumed in the development of a product at the manufacturing stage for an IFRS company y. Materials consumed in research projects
General borrowing costs on the company’s line of credit

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions