b. If Blue Corporation elects to amortize the research and experimental expenditures over 60 months, what will the amount of thededuction be?Amount of the deduction201920200✓0202120220X132,198 Xc. How would your answer change if Blue Corporation incurred the expenses in 2022 and 2023 (rather than 2019 and 2020)?Amount of the deduction20220X20230X Problem 7-40 (LO. 5)Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2019. Blue had thefollowing expenses in connection with the project:20192020SalariesMaterials$500,000 $600,00090,00070,000Insurance8,00011,000Utilities6,0008,000Cost of inspection of materials for quality control7,0006,000Promotion expenses11,00018,000Advertising020,000Equipment depreciation15,00014,000Cost of market survey8,0000The new product will be introduced for sale beginning in July 2021. Determine the amount of the deduction for research andexperimental expenditures for 2019, 2020, 2021, and 2022.If an amount is zero, enter "0". Calculate the monthly expense to the nearest dollar and use in subsequentcomputations.

Computation of Total research and experimental expenditures For the Period 2019 & 2020…

Answered: b. If Blue Corporation elects to…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 28CE

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Problem 7-36 (LO. 5) Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2019. Blue had the following expenses in connection with the project: 2019 2020 Salaries $500,000 $600,000 Materials 90,000 70,000 Insurance 8,000 11,000 Utilities 6,000 8,000 Cost of inspection of materials for quality control 7,000 6,000 Promotion expenses 11,000 18,000 Advertising 20,000 Equipment depreciation 15,000 14,000 Cost of market survey 8,000 The new product will be introduced for sale beginning in July 2021. Determine the amount of the deduction for research and experimental expenditures for 2019, 2020, and 2021. If an amount is zero, enter "0". Calculate the monthly expense to the nearest dollar and use in subsequent computations. a. If Blue Corporation elects to expense the research and experimental expenditures, what will the amount of the deduction be? 2019 2020 2021 Amount of the deduction $4 2$ b. If Blue Corporation elects to amortize…
2021- 1023.121103 BFN-C201- ork -/0.5 Question 6 of 10 View Policies Current Attempt in Progress Crane Lumber, Inc., is considering purchasing a new wood saw that costs $60,000. The saw will generate revenues of $100,000 per year for five years. The cost of materials and labor needed to generate these revenues will total $60,000 per year, and other cash expenses will be $10,000 per year. The machine is expected to sell for $4,800 at the end of its five-year life and will be depreciated on a straight-line basis over five years to zero. Crane's tax rate is 34 percent, and its opportunity cost of capital is 11.10 percent. What is the project's NPV? (Do not round intermediate calculations. Round final answer to the nearest whole dollar, e.g. 5,275.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy…
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W https://education.wiley. B ch01 (Fall 2020) - PRI WP Final Exam (Fall 2020) B Present Value Tables (1.. Final Exam (Fall 2020) -/6 Question 34 of 50 View Policies Current Attempt in Progress Crane Products plans to produce 10500 units in January. Each unit requires 3 pounds of plastic, which costs $2 per pound. What standard material cost would the company use to plan for production? $5250 O $3500 O $2 O $6 Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air 80 F3 888 F4 F2 F5 F6 F7 F8 F9 @ 24 * 6. 7 Q W R. T Y 23
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QUESTION 5 A) A company sells product X & Y Sales for the year ended 2019 are: X: 5000 units @ ¢10 each Y: 3000 units @ ¢12 each The company expects to sell the following units in 2020: X: 6000 units @ ¢15 each Y: 4500 units @ ¢18 each Additional information: i) Budgeted opening stock X: 1000 units Y: 800 units Budgeted closing stock: X: 2000 units Y: 1500 units ii) Materials A and B are used to produce products X and Y based on the following ratio in order to produce one unit of X & Y Product Material A Material B X 3kg 2kg Y 2kg 1kg Purchase price ¢10 per Kg ¢12 per kg iii) Material A Material B Opening stock 8000 5000 Closing stock 6000 3500 (iv) The company has only one grade of labour and uses 3 hours to produce one unit of X 2 hours to produce one unit of Y Labour rate would be ¢20 per hour Required: Prepare the following budgets for 2020 Sales budget Production budget Direct Material usage budget Direct Material purchase budget Direct labour…
PROBLEM 8-3. ANTICIPATED LOSS Andrei Construction Company began operations on January 1, 2019. During the year, Andrei entered into a contract with Lindsey Company to construct a manufacturing facility. At that time, Andrei estimated that it would take 3 to complete the facility at a total cost of P4,500,000. The total contract price is P6,300,000. estimated that P4,204,200 more will be needed for its completion. Lindsey Company was billed and paid 30% of the contract price. years In 2019, Andrei incurred P1,185,800 in construction costs and The following year, Andrei Construction Company incurred P3,299,200 and the engineer's estimate of cost to complete is P2,500,000. It is expected that the project will be completed this year. Required: Compute the amount to be reported as Contract Revenue, Contract Costs and Profit to appear in the income statement for the years 2019 and 2020.
[2] In May 2021, Oliver Queen Company began work on a project that has a contact price of P5,000,000. Any costs incurred are expected to be recoverable. Progress billing, collections are of equal amount with costs incurred. 2021 2022 Cost incurred to date 1,125,000 3,825,000 Estimated cost to complete 3,375,000 1,275,000 Total estimated cost 4,500,000 5,100,000 In its income statement for the year 2022, the company would recognize a gross profit of (1) under percentage of completion method; (2) under cost recovery method: 225,000; (75,000) (200,000); zero (225,000); (100,000) (225,000); zero
Un September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021 January 1 through February 28, 2022. March 1 through April 30, 2022 $4,100,000 1,750,000 699,000 Athens expects a useful life of four years for the software and total revenues of $8,800.000 during that time. During 2022, revenue of $1,760,000 was recognized. Required: 1. Prepare a journal entry to record the development costs in each year of 2021 and 2022 2. Calculate the required amortization for 2022. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the required amortization for 2022.
On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021 $ 2,200,000January 1 through February 28, 2022 800,000March 1 through April 30, 2022 400,000 Athens expects a useful life of four years for the software and total revenues of $5,000,000 during that time. During 2022, revenue of $1,000,000 was recognized.Required:Prepare a journal entry in each year to record development costs for 2021 and 2022.
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