Richard Co. incurred research and development costs in 2021 as follows: Equipment acquired for use in various research and development projects Depreciation on the above equipment Materials used Compensation costs of personnel Outside consulting fees Indirect costs appropriately allocated The total research and development costs charged in Richard's 2021 income statement should be O P542,500. O P925,000. O P425,000. O P617,500. P500,000 67,500 100,000 250,000 75,000 125,000

Richard Co. incurred research and development costs in 2021 as follows: Equipment acquired for use in various research and development projects Depreciation on the above equipment Materials used Compensation costs of personnel Outside consulting fees Indirect costs appropriately allocated The total research and development costs charged in Richard's 2021 income statement should be O P542,500. O P925,000. O P425,000. O P617,500. P500,000 67,500 100,000 250,000 75,000 125,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Armando Corporation incurred the following expenses: 2022 2023 Salaries 515,000 614,000 Materials 90,000 70,000 Insurance and utilities 14,000 19,000 Promotion expense 11,000 18,000 Advertising -0- 20,000 Cost of market survey 8,000 -0- The new product will be available for sale July 1, 2024. The company would like to capitalize and amortize the expenditures. Calculate the amount of research and experimental expenditures for: a. 2022 b. 2023 Calculate the deduction for R&D expenses for: C. 2022 d. 2023 e. 2024 If the answer is 0, just type a 0. Use commas as appropriate, ie 55,000. Round answers to the nearest dollar.
Q7.
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Assume that ACW Corporation has 2022 taxable income of $1,500,000 for purposes of computing the $179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): Asset Placed in Service Basis Machinery September 12 $470,000 Computer equipment February 10 $ 70,000 Delivery truck August 21 $ 93,000 Qualified real property April 2 $ 1,380,000 (MACRS, 15 year, 150% DB) Total $2,013,000 Question: What is the maximum amount of §179 expense ACW may deduct for 2022? Answer: Question: What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022?
On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,090,000 to the various types of assets along with estimated useful lives and residual values are as follows: Asset Land Building Equipment Vehicles Total Cost $ 145,000 590,000 155,000 200,000 $ 1,090,000 Estimated Residual Value N/A none 12% of cost $ 16,000 Required 1 Estimated Useful Life (in On June 29, 2025, equipment included in the March 31, 2024, purchase that cost $109,000 was sold for $89,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. years). N/A 20 10 118 Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2024 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2025, and the…
Cake Company determined as a result of a plant re-arrangement that there had been a significant change in the manner in which a machinery was going to be used in manufacturing process. Estimated cash inflows from the use of the machinery-P1,750,000 Estimated cash outflows from the use of the machinery-P375,000 Estimated residual value of the machinery at the end of its useful life-P250,000 Estimated income tax payments-P100,000 What total amount should be included as future cash flows in determining the machinery's value in use?
AMP Corporation (calendar year-end) has 2022 taxable income of $1,900,000 for purposes of computing the $179 expense. During 2022, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Placed in Service Machinery September 12 Computer equipment Office building February 10 April 2 Basis $ 1,550,000 365,000 480,000 Total $ 2,395,000 b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2022 on the assets it placed in service in 2022, assuming no bonus depreciation?
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Am. 305.
Required information Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1. Table 2 and Table 5.) Asset Machinery Computer equipment Delivery truck Furniture Total Date Placed in Original Service Basis $116,000 October 25 February 3 MACRS depreciation March 17 April 22 56,000 69,000 196,000 $ 437,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $760,000. a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect $179 expense and elects out of bonus depreciation? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
During 2021, Sheridan Co. incurred the following costs: Testing in search for process alternatives $373000 Costs of marketing research for new product 243000 Modification of the formulation of a process 553000 Research and development services performed by Sunland Corp. for Sheridan 468000 In Sheridan's 2021 income statement, research and development expense should be $1021000. $1637000. $553000. $1394000.
The following schedule reflects the incremental costs and revenues for acapital project. The company uses straight-line depreciation. The interestexpense reflects an allocation of interest on the amount of this investment,based on the company’s weighted average cost capital:Revenues $650,000Direct costs $270,000Variable overhead 50,000Fixed overhead 20,000Depreciation 70,000General & administrative 40,000Interest expense 8,000458,000Net profit before taxes $192,000══════The annual cash flow from this investment, before tax considerations, would be: