A manufacturer incurs the following costs: $38,000 developing new techniques that will be put in placeshortly to cut production costs; $27,000 researching a new process to improve the quality of thestandard product and $8,000 on market research into the commercial viability of a new type of product.It is company policy to capitalise costs whenever permitted by IAS 38 Intangible Assets.9.7How much should be charged as research and development expenditure in profit or loss? (ignoreamortisation)$73,000$35,000$27,000$38,000A229ni2ud a ydeCBPPEARNING MEDIA

Answer: Option B is Correct i.e. $35,000.

A manufacturer incurs the following costs: $38,000 developing new techniques that will be pu shortly to cut production costs; $27,000 researching a new process to improve the quality of th standard product and $8,000 on market research into the commercial viability of a new type of It is company policy to capitalise costs whenever permitted by IAS 38 Intangible Assets. 9.7 How much should be charged as research and development expenditure in profit or loss? (ignor amortisation) $73,000 $35,000 $27,000 $38,000 20eni2ud a C BPP AEDIA

A manufacturer incurs the following costs: $38,000 developing new techniques that will be pu shortly to cut production costs; $27,000 researching a new process to improve the quality of th standard product and $8,000 on market research into the commercial viability of a new type of It is company policy to capitalise costs whenever permitted by IAS 38 Intangible Assets. 9.7 How much should be charged as research and development expenditure in profit or loss? (ignor amortisation) $73,000 $35,000 $27,000 $38,000 20eni2ud a C BPP AEDIA

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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During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
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Extra Corporation is installing a new machine at its production facility. It has incurred these costs: Purchase price (including input tax of P300,000) P2,800,000 Initial delivery and handling costs 200,000 Costs of site preparation 600,000 Consultants used for advice on the acquisition of the machine 700,000 Installation and assembly costs 500,000 Costs of testing 100,000 Costs of training employees on how to use the machine 80,000 Estimated dismantling costs to be incurred after 7 years 300,000 Operating losses before commercial production 400,000 The cost of the machine is Group of answer choices P5,200,000 P4,980,000 P4,900,000 P4,200,000
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A company is constructing a new production facility. The following costs have been incurred: Site preparation costs $50,000 Architects’ fees $26,000 Legal fees $10,000 Purchase of site $200,000 Costs incurred to relocate employees to the new facility $30,000 Administration costs $50,000 Total costs $366,000 The architects’ fees relate to the design of the new facility and the legal fees relate to legal advice received on the contract to purchase the site. The total value that should be recognized as Property, Plant and Equipment for the new facility should be Question 10Answer a. $ 314,000 b. $ 324,000 c. $ 344,000 d. $ 286,000
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