flóws. Whaât is the warranty provision on December 31, 2011? * O a. 210,000 b. 222,600
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- Entity A carries out research and development on 1 July 2019 called Plan X. In the year ended 30 June 2020, Entity A incurred costs in relation to Plan X of $504,000. These were incurred at the same amount each month up to 30 April 2020, when Plan X was completed. Plan X had been confirmed as feasible on 1 January 2020. The product produced by Plan X went on sale on 1 June 2020. The product produced by Plan X was expected to have a useful life of 20 years. Amortisation is measured monthly. REQUIRED: Measure the carrying amount of the development cost of Plan X on 30 June 2020.On January 1, 2021, ABC Co. purchased 50,000 units at P100 per unit.During 2021, the entity sold 40,000 units at P180 per unit. The entity paidP700,000 for operating expenses. The current replacement cost of theinventory on December 31, 2021 is P150 per unit. What is the net incomeunder current cost accounting for the year 2021?The following information relates to a company which prepares financial statements to 31st December each year: (a) On 1st January 2017, the company acquired new plant costing Ghs10million. This plant will require a complete overhaul after five years of use, at an estimated cost of Ghs1million. Accordingly, the company wishes to make a provision of Ghs200,000 for plant overhaul costs in its financial statement for the year to 31st December 2017 and then to increase this provision by Ghs200,000 every year for the next four years. This will have the effect of spreading the overhaul costs yearly over the years 2017 to 2021. (b) On 31st December 2017, the company moved from leased premises into new freehold premises. The lease on the old premises will continue for three more years at an annual cost of Ghs100,000. The lease cannot be cancelled and the premises cannot be sublet or used for any other purpose. The company wishes to make a provision of Ghs300,000 in its financial statements for…
- Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021? Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2022. How much would be the claimable input VAT on the second quarter of 2021? Bebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021?5. In 2020, Lalli Corporation incurred R&D costs as follows: Materials and equipment P100,000 Personnel 100,000 Indirect costs 50,000 P250,000 These cost relate to a product that will be marketed in 2021. The Company estimates that these costs will be recouped by December 31, 2024. Required What is the amount of R&D costs expense in 2020?In 2020, Lalli Corporation incurred R&D costs as follows:Materials and equipment P100,000Personnel 100,000Indirect costs 50,000P250,000These cost relate to a product that will be marketed in 2021. The Company estimates that these costs will be recouped by December 31, 2024.Required What is the amount of R&D costs expense in 2020?
- 12. RS Inc. sold a total of $23,000 of its products. As of the end of the year, a total of $9,600 of these sales had still not yet been collected. The original cost of products sold was $8,100. n Transactio Transactio Cash Asset + n Noncash Assets Cash Asset + Balance Sheet Noncash Assets = II Liabil- ities Balance Sheet = 13. On December 13, 2020, RS Inc. signed a contract with the organizer of the International Fair for Electronic Consumer Products for 100 units of RS's smaller spray cans, which are intended to be given away to visitors of the trade show. The selling price specified in the contract is $5 per unit. RS Inc. promised to deliver the units on March 10, 2021. IFECP has up to 30 days after delivery to pay for the spray cans. II Contrib. Capital Liabil- ities + Contrib. Capital Earned Rev- Capital enues + Income Statement Earned Rev- Capital enues Expen ses Expen = ses II Income Statement Net Incom e Net = Incom e IISuppose a company spends $100,000 on research and development in 2021. As a result of the products developed, additional revenue is generated over the next five years totaling $600,000. When is the cost of the research and development in 2021 recognized as an expense? Multiple Choice Evenly over the period 2022-2026. Full amount in 2026. Evenly over the period 2021-2025. Full amount in 2021.On December 31 Y1, the Company ARL develop a Product: Master 3D. The disbursement associate to the Product are the following: Research $6,000,000 and Development $4,000,000. The criteria have been met for recognition of the development costs as an asset. Product Master D will be in the market in Year 2 and is expected to marketable for 5 years. Total sales of the product are estimated at $100,000,000. Instructions: Using IAS 38, determine the effect of the Research & Development costs have on Company’s Net Income. Answer the following questions. 1. Choose one and explain Net Income using IFRS will be in Year 1: a. Higher by $________ larger than U.S. GAAP income. b. Lower by $________ larger than U.S. GAAP income. c. Both will be the same. 2. Explanation: 3. Year 3 (ending balance) Determine the Book Value of the asset 4. Explanation: Show you computations.
- In 2020, Lalli Corporation incurred R&D costs as follows: Materials and equipment 100,000Personnel 100,000Indirect costs 50,000 P250,000 These cost relate to a product that will be marketed in 2021. The Company estimates that these costs will be recouped by December 31, 2024. RequiredWhat is the amount of R&D costs expense in 2020?On December 31 Y1, the Company ARL develop a Product: Master 3D. The disbursement associate to the Product are the following: Research $6,000,000 and Development $4,000,000. The criteria have been met for recognition of the development costs as an asset. Product Master D will be in the market in Year 2 and is expected to marketable for 5 years. Total sales of the product are estimated at $100,000,000. Instructions: Using IAS 38, determine the effect of the Research & Development costs have on Company’s Net Income. Answer the following questions. 1. Choose one and explain Net Income using IFRS will be in Year 1: a. Higher by $________ larger than U.S. GAAP income. b. Lower by $________ larger than U.S. GAAP income. c. Both will be the same. 2. Explanation: 3. Year 3 (ending balance) Determine the Book Value of the asset 4. Explanation:Newmarket's revenue as shown in its draft statement of profit or loss for the year ended 31 December 20X9 is $27 million. This includes $8 million for a consignment of goods sold on 31 December 20X9 on which Newmarket will incur ongoing service and support costs for two years after the sale. The supply of the goods and the provision of service and support are separate performance obligations under the terms of IFRS 15 Revenue from contracts with customers. The cost of providing service and support is estimated at $800,000 per annum. Newmarket applies a 30% mark-up to all service costs. At what amount should revenue be shown in the statement of profit or loss of Newmarket for the year ended 31 December 20X9? (Ignore the time value of money.)
