Problem 192 (IAA) Metal Company incurred the following costs during the current year: Laboratory research aimed at discovery of New knowledge 750,000 Design of tools, jigs, molds and dies involving New technology 220,000 Quality control during commercial production, Including routine testing 350,000 Equipment acquired two years ago, having an estimated useful life of five years with no residual value, used in various R and D projects Research and development services performed by Stone Company for Metal Company Research and development services performed by Metal Company for Kaye Company 1,500,000 230,000 20,000 What amount of research and development expense should be reported in the current year? a. 1,200,000 c. 1,870,000 b. 1,500,000 d. 2,170,000

Problem 192 (IAA) Metal Company incurred the following costs during the current year: Laboratory research aimed at discovery of New knowledge 750,000 Design of tools, jigs, molds and dies involving New technology 220,000 Quality control during commercial production, Including routine testing 350,000 Equipment acquired two years ago, having an estimated useful life of five years with no residual value, used in various R and D projects Research and development services performed by Stone Company for Metal Company Research and development services performed by Metal Company for Kaye Company 1,500,000 230,000 20,000 What amount of research and development expense should be reported in the current year? a. 1,200,000 c. 1,870,000 b. 1,500,000 d. 2,170,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4PB: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...

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Metal Company incurred the following costs during the current year: Laboratory research aimed at discovery of new knowled re Design of tools, J+gs, molds and dies involving new technology Quality control during commercial production, including routine testing Equipment acquired two years ago, having an estimated useful life of five years with no residual value, used in various R and D projects Research and development services performed by Stone Company for Metal Company Research and development services performed by Metal Company for Sand Company 750,,000 220,000 350,000 1,500,000 230,000 20,000 What amount of research and development expense should be reported in the current year? a. 1,200,000 b. 1,500,000 c. 1,870,000 d. 2,1'70,000
1. Connie Company incurred the following costs during the current year: Design of tools, jigs, molds and dies involving new technology. 2,500,000 Modification of the formulation of process. 3,200,000 Trouble-shooting in connection with breakdowns during commercial production 2,000,000 Adaptation of an existing capability to a particular customer’s need as part of a continuing commercialactivity. 2,200,000 What amount should be reported as research and development expense for the current year?A. 2,500,000 B. 3,200,000 C. 4,700,000 D. 5,700,000
1. During the current year, Dangerous company incurred the following costs:Research and development services performed by anotherentity for Luminous 300,000Design, construction and testing of preproduction prototypeAnd model 400,000Testing in search for new product or process alternative 350,000 What total amount should be reported as research and development expense in thecurrent year?
. Milby company incurred the following research and development costs during the current year: Equipment purchased for current and future projects 150,000Equipment purchased for current project only 300,000Research and development salaries of current project 600,000Legal fees to obtain patent 75,000 Material and labor costs for prototype product 900,000 The equipment has a five-year useful life and is depreciated using the straight line method. What total amount should be recognized as research and development expense for current year?
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
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:
PROBLEM 8: Repertoire Company acquired a machine and incurred the following costs: Cash paid for machine, including VAT of P96,000 896,000 Cost of transporting machine 30,000 Labor cost of installation by expert fitter 50,000 Labor cost of testing machine 40,000 Insurance cost for the current year 15,000 Cost of training for personnel who will use the machine 25,000 Cost of safety rails and platform surrounding machine 60,000 Cost of water device to keep machine cool 80,000 Cost of adjustment to machine to make it operate more efficiently 75,000 Estimated dismantling cost to be incurred as required by contract 65,000 What total amount should be capitalized as cost of the equipment?
Immortality Co. made the following expenditures relating to a newly invented product Legal and registration costs related to a patent on the product 120,000Special equipment used solely on R&D activities for the newly invented product 720,000Depreciation on the special equipment above 180,000Labor and material costs incurred in producing a prototype model 2,400,000Cost of testing the prototype 960,000 Required:What is the total amount of costs that will be expensed when incurred?
Marlin Corporation incurred the following costs during the year ended December 31, 2024:Routine, on-going efforts to refine, enrich, & improve upon the qualities of an existing product 125,000Design, construction, and testing of pre-production prototypes and models 110,000 Quality control during commercial production including routine testing of products 150,000 Laboratory research aimed at discovery of new knowledge 180,000How much did Marlin Corporation incur in 2024 as research and development cost? a. 235,000 b. 275,000 c. 290,000 d. 330,000
Problem 1 Knight Company purchased an equipment for P369,600 to be used in the construction of MRT-3. The company had to pay the following in relation to the equipment: Import duties P10,000 Non-refundable taxes 15,000 Shipping costs Cost of testing 2,000 1,200 Installation costs 1,800 Other information: • The company is required to dismantle the equipment at the end of its useful life. The company estimates the dismantling costs to be P50,000. The relevant discount rate is 10%. • The equipment has a useful life of 5 years. How much is the initial cost of the equipment? • The purchase price includes input vat of P39 600 How much is the initial cost of the asset?
Problem 20-4 (AICPA Adapted) Koral Company incurred the following costs during the current year: Modification to the formulation of a chemiçal product Trouble shooting in connection with breakdowns during commercial production Design of tools, jigs, molds and dies involving new technology Seasonal or other periodic design changes to existing products Laboratory research aimed at discovery of new technology 135,000 150,000 170,000 185,000 215,000 What total amount should be reported as research and development expense for the current year? а. 520,000 b. 470,000 385,000 d. 335,000 C.
During the fiscal year, ABC Company incurred the following costs related to property, plant and equipment: Amount paid to the contractor for the building constructed 12,000,000Building permit fee 120,000Excavation cost 110,000Architect fee 440,000Interest that would have been earned had the money used during theperiod of construction been invested in the money market 330,000Invoice cost of machine acquired, terms 8/10, n/30 6,500,000Freight, unloading and delivery charges for machine acquired 100,000Custom duties and other charges 270,000Allowance and hotel accommodation, paid to foreign techniciansduring installation and test run of machine 520,000Royalty payment on machines purchased (based on units producedand sold) 240,000Cash paid for the purchase of land (none was allocated to oldbuilding) 10,000,000Mortgage assumed on the land purchased 2,000,000Realtor’s commission 650,000Legal fees, realty taxes and documentation expenses 900,000Amount paid to relocate persons squatting on the…