ABC Company had the following expenditures related to a software: Costs to develop the software for internal use in ABC's operations (after technological feasibility) P100,000 Cost of market research activities, P75,000 How much costs should be expensed? 175,000 100,000 75,000 0
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18. ABC Company had the following expenditures related to a software:
Costs to develop the software for internal use in ABC's operations (after technological feasibility) P100,000
Cost of
How much costs should be expensed?
175,000
100,000
75,000
0
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- 13 The following costs are incurred by Everlasting Corporation in 2022: a. Cost of activities aiming new knowledge P150,000 b. Cost of developing and producing prototype model 30,000 c. Cost of seminars to introduce the newly develop product 120,000 d. Advertisement cost to introduce the newly develop product 60,000 e. Cost incurred for search of alternatives 35,000 f. Cost of final selection of possible alternatives 50,000 g. Cost of machine acquired to be used only in an R&D project 300,000 h. Cost of engineering follow through in an early phase of commercial production 50,000 i. Adaptation of an existing capability to particular customers need 36,000 j. Salaries of employees involved in R&D 480,000 k. Radical modification to the formulation of a chemical product 40,000 l. Laboratory…Treasure Land Corporation incurred the following costs in 2020. Cost of laboratory research aimed at discovery of new knowledge $120,000 Cost of testing in search for product alternatives 100,000 Cost of engineering activity required to advance the design of a product to the manufacturing stage 210,000 Prototype testing subsequent to meeting economic viability 75,000 $505,000 Prepare the necessary 2020 journal entry(ies) for Treasure Land.35.During 2021, King Co. incurred the following costs: Testing in search for process alternatives 720,000 Costs of testing prototype and design modifications 500,000 Modification of the formulation of a process 1,220,000 Research and development services performed by Queen Corp. for King 650,000 In King's 2021 statement of profit or loss, research and development expense should be 1,220,000 1,870,000 2,590,000 3,090,000
- In year 1, in a project to develop product X, MAC company incurred R&D costs totaling $25 million. MAC is able to clearly distinguish the research phase from the development phase of the project. Research phase costs are $10 million, and development phase are $15 million. All of the IAS 38 criteria have been met for the recognition of $10 million of the development costs of an asset. Determine how costs will be capitalized and expensed under IFRS and GAAP Select one:a. GAAP : $10mn expensed as R&D. IFRS : $10mn capitalized as Deferred development costb. GAAP : $10mn capitalized as R&D. IFRS : $10mn capitalized as Deferred development costc. GAAP : $10mn capitalized as R&D. IFRS : $10mn expensed as Deferred development costd. GAAP : $10mn capitalized as R&D. IFRS : $10mn capitalized as Deferred development costTreasure Land Corporation incurred the following costs in 2020. Cost of laboratory research aimed at discovery of new knowledge $120,000 Cost of testing in search for product alternatives 100,000 Cost of engineering activity required to advance the design of a product to the manufacturing stage 210,000 $430,000 Prepare the necessary 2020 journal entry or entries for Treasure Land.12 The following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization fees P120,000 July 2 Land site and old building 1,890,000 July 3 Option payments 250,000 July 20 Broker’s fees on property acquired 110,400 July 30 Cost of remodeling the building 60,000 August 30 Salaries of executives 360,000 December 21 Real property taxes 240,000 Additional information: The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land? Group of answer choices 1,856,320 1,992,320 1,512,000 2,288,000
- Waikiki Trading Ltd incurred the following project expenditures inrespect of a new ERP system in the development phase: Salaries of IT employees working exclusively on the project:R670 000 Employee awareness leaflets: R32 000 General overhead cost allocation: R123 000 Specialist consultancy service: R432 000State what value for each of the above four expenditures will beincluded in the capitalised cost of the ERP system. Write downonly the amounts. (If the amount to be included is NIL in youropinion, then write down NIL).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.Immortality Co. made the following expenditures relating to a newly invented product Legal and registration costs related to a patent on the product 120,000Special equipment used solely on R&D activities for the newly invented product 720,000Depreciation on the special equipment above 180,000Labor and material costs incurred in producing a prototype model 2,400,000Cost of testing the prototype 960,000 Required:What is the total amount of costs that will be expensed when incurred?
- 10 In 2019, Flor company incurred the following costs: Laboratory research aimed at discovery of new knowledge 240,000 Cost of testing prototype but economic viability not achieved 60,000 Quality control during commercial production 360,000 Construction of research facility having an estimated useful life Of 5 years but no alternative future use 480,000 What is the total amount of research and development expense for the current year?As a result of FASB Statement of Financial Accounting Standards No. 86, "Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed," most software production costs are likely to be a. expensed as R&D costsb. allocated to inventory and expensed to cost of goods sold when the software is soldc. capitalized and amortized over a 40-year periodd. capitalized and amortized over a relatively short period, such as five years. Squarepants company made the following expenditures relating to product Y.Legal costs to file a patent on Product Y. Production of the finishedProduct would not have been undertaken without the patent 75,000Special equipment to be used solely for the development of Product YThe equipment has no other use and has an estimated useful life of 4 yrs 450,000Labor and materials costs incurred in producing a prototype 1,500,000Cost of testing the prototype 600,000 What total amount should be expensed when incurred?