Splish Industries Ltd. is a company in the high-technology industry. Splish has been working on developing a new product for homeentertainment, the holographic movie projector. The projector meets all of the six criteria required in order to capitalize developmentcosts. During 2023, Splish incurred the following costs related to research and development:Rent of facilitySalaries of research staffLegal costs to obtain new patent for projectorLegal costs of successfully defending new patent in courtMaterials consumed in manufacture of prototypesConsulting fees paid for general researchIndirect costs related to research and developmentAmount capitalized$130,000$330,00031,00040,00014,10045,200(a1) Calculate the amount that Splish would be allowed to capitalize as an intangible asset for 2023, assuming that Splish follows IFRS.10,100

Rent expenses is not directly attributable to development of the intangible asset.Salaries of…

Answered: ty search staff o obtain new patent for…

ty search staff o obtain new patent for projector f successfully defending new patent in court $130,000 330,000 31,000 40,000 10.100

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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Carm Ltd. is a company in the high-technology industry and follows IFRS. Carm has been working on developing a new solar panel technology. The technology meets all of the six criteria required in order to capitalize development costs. During 2022, Carm incurred the following costs related to research and development: Costs to train staff Legal costs to obtain new patent for technology Legal costs of defending new patent in court Materials consumed in manufacture of prototypes Consulting fees paid for general research Indirect costs related to research and development $390,000 Select one: O True O False $50,000 $36,000 $13,100 $45,200 $9,700 Based on the above information, the amount that Carm would be allowed to capitalize as an intangible asset is $99,100.
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