Please answer both of the questions. Thank you Problem 33-10 (IAA)Courage Company incurred the following costs in thecurrent year:Equipment with a useful life of four years to be usedin various research and development projectsStart-up costs incurred when opening a new plantAdvertising expense to introduce a new productEngineering costs incurred to advance a productto full production stage but economic viability isnot yet achieved1,800,0004,200,0002,100,0001,200,000What is the total research and development expense?a. 1,650,000b. 2,220,000c. 3,000,000d. 3,420,000Problem 33-11 (AICPA Adapted)aring theWest Company purchased two machines for P1,000,000 eachat the beginning of current year. The machines were put intouse immediately.750,00Machine A has a useful life of 5 years and can be used only inone research project.200Machine B will be used for 2 years on a research anddevelopment project and then used by the production divisionfor an additional 8 years. The straight line method ofdepreciation is used.350,00500,000What total amount should be recognized as research anddevelopment expense for the current year?230,00020,000a. 2,000,000b. 1,500,000c. 1,100,000.d.shouldс.300,000200,00050.000

The research and development cost includes the total cost incurred to develop the product.

Problem 33-10 (IAA) Courage Company incurred the following costs in the current year: Equipment with a useful life of four years to be used in various research and development projects Start-up costs incurred when opening a new plant Advertising expense to introduce a new product Engineering costs incurred to advance a product to full production stage but economic viability is not yet achieved 1,800,000 4,200,000 2,100,000 1,200,000 What is the total research and development expense? a. 1,650,000 b. 2,220,000 c. 3,000,000 d. 3,420,000 8 the 50,000 pense

Problem 33-10 (IAA) Courage Company incurred the following costs in the current year: Equipment with a useful life of four years to be used in various research and development projects Start-up costs incurred when opening a new plant Advertising expense to introduce a new product Engineering costs incurred to advance a product to full production stage but economic viability is not yet achieved 1,800,000 4,200,000 2,100,000 1,200,000 What is the total research and development expense? a. 1,650,000 b. 2,220,000 c. 3,000,000 d. 3,420,000 8 the 50,000 pense

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. During the current year, Dangerous company incurred the following costs:Research and development services performed by anotherentity for Luminous 300,000Design, construction and testing of preproduction prototypeAnd model 400,000Testing in search for new product or process alternative 350,000 What total amount should be reported as research and development expense in thecurrent year?
1. Connie Company incurred the following costs during the current year: Design of tools, jigs, molds and dies involving new technology. 2,500,000 Modification of the formulation of process. 3,200,000 Trouble-shooting in connection with breakdowns during commercial production 2,000,000 Adaptation of an existing capability to a particular customer’s need as part of a continuing commercialactivity. 2,200,000 What amount should be reported as research and development expense for the current year?A. 2,500,000 B. 3,200,000 C. 4,700,000 D. 5,700,000
Courage Company incurred the following costs in the current year: R and D equipment with useful life of four years in various R and D projects 1800 000 Start – up costs incurred when opening a new product 4 200 000 Advertising expense to introduce a new product. 2 100 000 Engineering costs incurred to advance a product to full production stage but economic viability is not yet achieved 1 200 000 What amount should be recorded as research and development expense?
E 12-9 Research and Development Cost In 2019, Lalli Corporation incurred R&D costs as follow: Materials used from inventory 100,000 Personnel in R&D lab 100,000 Allocation of the cost of utilities and maintenance costs of the R&D facility 50,000 These costs relate to a product that will be marked in 2020. The company estimates tht these costs will be recouped by December 31, 2020. Required: 1. What is the amount of R&D cost expensed in 2019? 2. Would your answer change if the materials were purchased and not used or if the utilities and maintence costs were related to the corporate offices?
. Milby company incurred the following research and development costs during the current year: Equipment purchased for current and future projects 150,000Equipment purchased for current project only 300,000Research and development salaries of current project 600,000Legal fees to obtain patent 75,000 Material and labor costs for prototype product 900,000 The equipment has a five-year useful life and is depreciated using the straight line method. What total amount should be recognized as research and development expense for current year?
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18).from the following facts,for the units produced depreciation what is given cost - $40,000 residual value - $5,000 est total units produced for useful life calculation - $100,00 units produced per year: year 1 -20,000 year 2- 15,000 year 3- 25,000 year 4- 32,000 year 5- 17,000 year 6 - 15,000 required; total accumulated depreciation at end of year 4
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