Research & Development costs: A)Are included in the cost of a patent on the balance sheet B) Should be expensed C) Are amortized over the useful life of the patent D) Both A&B are correct
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Research & Development costs:
A)Are included in the cost of a patent on the
B) Should be expensed
C) Are amortized over the useful life of the patent
D) Both A&B are correct
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- Research and development costs a. Are recorded as research and development assets. b. Are capitalized and then amortized. c. Should be included in the cost of the patent they relate to. d. Should be expensed.a. Over what period of time should the cost of a patent acquired by purchase be amortized?b. In general, what is the required accounting treatment for research and development costs?c. How should goodwill be amortized?How should research and development costs be accounted for, according to an IASB Statement? a. Must be capitalized when incurred and then amortized over their estimated useful lives. b. Must be expensed in the period incurred. c. May be either capitalized or expensed when incurred, depending upon the materiality of the amounts involved. d. Must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure will have alternative future uses or unless contractually reimbursable.
- Under IFRS a. research and development expenditures are expensed in the period incurred. b. research and development expenditures are capitalized and amortized. c. development expenditures that meet certain criteria are capitalized and amortized; research expenditures are expensed in the period incurred. d. research expenditures that meet certain criteria are capitalized and amortized; development expenditures are expensed in the period incurred.The general rule in the accounting treatment of research and development costs is A. Capitalize all costs as assets when incurred and amortized when revenue is earned. B. Treat all costs as current expenses as incurred. C. Capitalize selectively, and predetermine the conditions that would require capitalization as well as those that would be written off as current expenses. D. Accumulate all costs in a special intangible asset account until a determination can be made as to the degree of future benefits.Costs that are capitalized with regard to a patent include a. Legal fees of obtaining the patent, incidental costs of obtaining the patent, and costs of successful patent infringement suits. b. Legal fees of obtaining the patent, incidental costs of obtaining the patent, and research and development costs incurred on the invention that is patented. c. Legal fees of obtaining the patent, costs of successful patent infringement suits, and research and development costs incurred on the invention that is patented. d. Incidental costs of obtaining the patent, costs of successful and unsuccessful patent infringement suits, and the value of any signed patent licensing agreement.
- over what period of time should the cost of a patent aquired by purchased be amortized?Which of the following is not a condition that must be satisfied before interest capitalization can begin on a qualifying asset? A) Activities that are necessary to get the asset ready for its intended use are in progress. B) The interest rate is equal to or greater than the company's cost of capital. C) Interest cost is being incurred. D) Expenditures for the assets have been made.(Multiple Choice Question) For the purpose of calculating amortization, the costs of defending a patent in court are: 1. Divided by 2, and then added to the cost of the patent 2. Added to the cost of the patent 3. Recorded as a separate expense 4. Subtracted from the cost of the patent
- 4. Which of the following costs would not be capitalized? a. Acquisition cost of equipment to be used on current and future research projects. b. Engineering costs incurred to advance the project to the full production stage. c. Cost incurred to file for patent. d. Cost of testing prototype before economic feasibility has been demonstration.1. Exploration and evaluation assets are initially measured at a. cost. b. revalued amount. c. fair value. d. a or b 2. Exploration and evaluation assets are exploration and evaluation expenditures recognized as a. assets in accordance with the entity’s accounting policy. b. expenses in accordance with applicable PFRSs. c. assets in accordance with (a) above, subject to the limitations provided under PAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. d. any of these Use the following information for the next two questions: In 20x1, OBSTREPEROUS NOISY Mining Corp. acquired the right to use 1,000 acres of land to mine for gold. The lease cost is ₱200,000,000, and the related exploration costs on the property amounted to ₱40,000,000. It is the policy of OBSTREPEROUS Mining Corp. to capitalize all costs of exploration and evaluation of mineral resources. Intangible development costs of drilling, tunnels, shafts, and wells incurred before opening the mine amounted to…Can someone please help with this study guide question it’s also asks for ending balance of patents,goodwill, franchises, research and development expense, and amortization expense
