Splish Industries Ltd. is a company in the high-technology industry. Splish has been working on developing a new product for homeentertainment, the holographic movie projector. The projector meets all of the six criteria required in order to capitalize developmentcosts. During 2023, Splish incurred the following costs related to research and development:Rent of facilitySalaries of research staffLegal costs to obtain new patent for projectorLegal costs of successfully defending new patent in courtMaterials consumed in manufacture of prototypesConsulting fees paid for general researchIndirect costs related to research and developmentAmount capitalized$130,000$330,00031,00040,00014,10045,200(a1) Calculate the amount that Splish would be allowed to capitalize as an intangible asset for 2023, assuming that Splish follows IFRS.10,100

Rent expenses is not directly attributable to development of the intangible asset.Salaries of…

Answered: ty search staff o obtain new patent for…

ty search staff o obtain new patent for projector f successfully defending new patent in court $130,000 330,000 31,000 40,000 10.100

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter26: Capital Budgeting (capbud)

Section: Chapter Questions

Problem 5R

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Question

Splish Industries Ltd. is a company in the high-technology industry. Splish has been working on developing a new product for home
entertainment, the holographic movie projector. The projector meets all of the six criteria required in order to capitalize development
costs. During 2023, Splish incurred the following costs related to research and development:
Rent of facility
Salaries of research staff
Legal costs to obtain new patent for projector
Legal costs of successfully defending new patent in court
Materials consumed in manufacture of prototypes
Consulting fees paid for general research
Indirect costs related to research and development
Amount capitalized
$130,000
$
330,000
31,000
40,000
14,100
45,200
(a1) Calculate the amount that Splish would be allowed to capitalize as an intangible asset for 2023, assuming that Splish follows IFRS.
10,100

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