In February 2021, Culverson Company began developing a new software package to be sold to customers. The software allows people to enter health information and daily eating and exercise habits to track their health status. The project was completed in November 2021 at a cost of $800,000. Of this amount, $300,000 was spent before technological feasibility was established. Culverson expects a useful life of two years for the new product and total revenues of $1,500,000. Determine the amount that Culverson should capitalize as software development costs in 2021.
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In February 2021, Culverson Company began developing a new software package to be sold to customers. The software allows people to enter health information and daily eating and exercise habits to track their health status. The project was completed in November 2021 at a cost of $800,000. Of this amount, $300,000 was spent before technological feasibility was established. Culverson expects a useful life of two years for the new product and total revenues of $1,500,000. Determine the amount that Culverson should capitalize as software development costs in 2021.
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- During 2020, TULIP Corporation incurred costs to develop and produce a routine, low-risk computer software product as follows: Packaging product (500 units) -₱90,000; Duplication of computer software and training materials from product masters (1,000 units) -₱250,000; Completion of detailed program design -₱130,000; Cost of producing product masters for training materials -₱150,000; Other testing costs after establishment of technological feasibility -₱200,000; Costs incurred for coding and testing to establish technological feasibility -₱100,000; Other coding costs after establishment of technological feasibility -₱240,000. In TULIP's December 31, 2020 statement of financial position, what amount should be capitalized as software cost subject to amortization?During 2020, TULIP Corporation incurred costs to develop and produce a routine, low-risk computer software product as follows: Packaging product (500 units) -₱90,000; Duplication of computer software and training materials from product masters (1,000 units) -₱250,000; Completion of detailed program design -₱130,000; Cost of producing product masters for training materials -₱150,000; Other testing costs after establishment of technological feasibility -₱200,000; Costs incurred for coding and testing to establish technological feasibility -₱100,000; Other coding costs after establishment of technological feasibility -₱240,000. In TULIP's December 31, 2020 statement of financial position, what amount should be capitalized as software cost subject to amortization? * a. ₱ 570,000 b. ₱ 690,000 c. ₱ 540,000 d. ₱ 590,000During 2020, TULIP Corporation incurred costs to develop and produce a routine, low-risk computer software product as follows: Packaging product (500 units) -₱90,000; Duplication of computer software and training materials from product masters (1,000 units) -₱250,000; Completion of detailed program design -₱130,000; Cost of producing product masters for training materials -₱150,000; Other testing costs after establishment of technological feasibility -₱200,000; Costs incurred for coding and testing to establish technological feasibility -₱100,000; Other coding costs after establishment of technological feasibility -₱240,000. In TULIP's December 31, 2020 statement of financial position, what amount should be capitalized as software cost subject to amortization? * ₱ 540,000 ₱ 590,000 ₱ 570,000 ₱ 690,000
- During 2020, BLACKPINK INC. incurred costs to develop and produce a routine, low-risk computer software product as follows: • Completion of detailed program design or working model- 1,000,000 • Cost incurred for coding and testing to establish technological feasibility- 200,000 • Other coding costs after the establishment of technological feasibility- 2,000,000 • Other testing costs after the establishment of technological feasibility- 1,500,000 • Costs of producing product masters for training materials- 2,500,000 • Duplication of computer software and training materials from product master- 3,000,000 • Production overhead- 1,000,000 • Packaging product- 500,000 • Administrative overhead- 750,000 • Promotional cost of the finished software- 200,000 • Abnormal amount of wasted materials and labor costs- 250,000 In the December 31, 2020 balance sheet, what amount should be reported as inventory?On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021 $ 2,200,000January 1 through February 28, 2022 800,000March 1 through April 30, 2022 400,000 Athens expects a useful life of four years for the software and total revenues of $5,000,000 during that time. During 2022, revenue of $1,000,000 was recognized.Required:Prepare a journal entry in each year to record development costs for 2021 and 2022.Pfizer is currently in the process of creating and producing life-saving medicines and medical devices for people in need. As an industry leader, Pfizer employs a number of scientists and doctors that research and test potential new medications and medical self-testing technologies. These research teams incurred $1,040,000 in salaries and $2,264,300 in laboratory rent during 2021. Once there are feasible production plans in place and a customer base has been identified and vetted, the development team works on producing and testing prototypes. The cost of development activities for 2021 amounts to $7,550,000 and there are several projects with fair values amounting to $5,230,400 planned and scheduled for 2022. Part of the total 2021 development costs includes $995,000 for routine alternations to the manufacturing processes. As the year-end approaches, Pfizer must begin the closing process to produce their 2021 U.S. GAAP financial statements. what is the problem statement
- On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021$2,400,000January 1 through February 28, 20221,000,000March 1 through April 30, 2022600,000 Athens expects a useful life of four years for the software and total revenues of $7,000,000 during that time. During 2022, revenue of $1,540,000 was recognized. Required: Prepare a journal entry in each year to record development costs for 2021 and 2022.Late in 2021, a “bug” was discovered in a software product that was installed for several of your company's clients. Although the bug was not your company's fault, the CEO of the company feels strongly that company software engineers should assist the clients with a programming solution since the company recommended the software. Clients will be contacted early in 2022 and should have fixes in place for all those affected by the end of the first quarter of 2022. The estimated cost is $7,000. Prepare end of year adjusting entries, corrections, and any other necessary entries necessary to prepare accurate financial statements for 2021.In 2018, the Port of Spain General Hospital purchases a scanner at a cost of $ 100,000. The scanner has a useful life of 5 years with no residual value. It is depreciated using the straight line method and its annual operating costs are $ 120,000. In 2019 the hospital is approached by another supplier to purchase a more modern machine for $ 115,000. This new machine has a life span of 4 years and will save $ 25,000 in annual operating costs. The new supplier is willing to buy the old scanner for $ 30,000. Required: a) Compute the gain or loss if the old scanner is replaced in 2019. b) Advise the hospital on the purchase of the new scanner.
- In 2018, the Port of Spain General Hospital purchases a scanner at a cost of $ 100,000. The scanner has a useful life of 5 years with no residual value. It is depreciated using the straight line method and its annual operating costs are $ 120,000. In 2019 the hospital is approached by another supplier to purchase a more modern machine for $ 115,000. This new machine has a life span of 4 years and will save $ 25,000 in annual operating costs. The new supplier is willing to buy the old scanner for $ 30,000. Required: Compute the gain or loss if the old scanner is replaced in 2019. 2. Advise the hospital on the purchase of the new scanner.MHA Medical Center is starting a new lab test center on its third floor. The expected patient volume demands will generate $500,000 per year in revenues for the next five years. The new center will incur operating expenses, excluding depreciation, of $300,000 per year for the next five years. The initial cost of the new equipment is $700,000. Straight-line depreciation is used to estimate depreciation expense, and the equipment will be depreciated over a five-year life to their salvage value. The expected salvage value of the equipment at year five is $80,000. Compute the NPV (at 10 percent cost of capital) and IRR to determine the financial feasibility of this project if this were a tax-paying entity with a tax rate of 30 percent. Use the following tables. * LOOK at Image Givens: Years 0 1 2 3 4 5 Initial investment $0 $0 Net revenue $0 $0 $0 $0 $0 Operating expenses…An outpatient surgery center performs 10,000 procedures in 2020 and incurs a total cost for utilities equal to $20,000. In 2021, the center performs 12,000 procedures and incurs a utilities cost equal to $22,000. The total fixed cost of utilities (either year) is _____________ .