INTERMEDIATE ACCOUNTING-W/WILEYPLUS PKG
INTERMEDIATE ACCOUNTING-W/WILEYPLUS PKG
17th Edition
ISBN: 9781119503590
Author: Kieso
Publisher: WILEY
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Chapter 12, Problem 21Q
To determine

Research and development costs: It is defined as the costs incurred on the research for making a product ready for manufacturing.

(a)

To determine the particular activities should be expensed as R&D costs or not.

To determine

(b)

To determine the particular activities should be expensed as R&D costs or not.

To determine

(c)

To determine the particular activities should be expensed as R&D costs or not.

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General accounting question
Kelly Company purchased a bulldozer at a cost of $200,000. The bulldozer has an estimated salvage value of $25,000 and an estimated life of 10 years, or 15,000 hours of operation. The bulldozer was purchased on January 1, 2018, and was used 3,000 hours in 2018 and 2,500 hours in 2019. What amount will Kelly Company report as depreciation expense over the 10-year life of the equipment using straight-line depreciation?
18. On a small tropical island, two firms draw on the same supply of labor and capital. The first _firm produces fish, and in the fishing industry the marginal product of labor is 8 and the mar- ginal product of capital is 5. The second firm produces coconut, and in the coconut industry the marginal product of labor is 64 and the mar- ginal product of capital is 32. a. Show that the allocation of labor and capital between the two industries is inefficient. b. Suggest a reallocation of labor and capital that will enable the island to produce more fish and coconuts without using more resources.
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