INTERMEDIATE ACCOUNTING RMU 9TH EDITION
9th Edition
ISBN: 9781260998726
Author: SPICELAND
Publisher: MCG
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Chapter 10, Problem 10.32E
1.
To determine
Research and development costs:
Research and development costs refer to the expenditures spent on research, development, improvement or introduction of new products, processes, a new patent or even a copyright, that a company expects to get benefits.
To Prepare: The journal entries to record the development costs in 2018and 2019.
2.
To determine
To Calculate: The required amortization for the year 2019.
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Brief Exercise 11-13 (Algo) Amortization; Software development costs [LO11-4]
On September 30, 2024, Athens Software began developing a software program to shield personal computers from
malware and spyware. Technological feasibility was established on February 28, 2025, and the program was available
for release on April 30, 2025. Development costs were incurred as follows:
$
September 30 through December
31, 2024
January 1 through February 28,
2025
March 1 through April 30, 2025
Athens expects a useful life of four years for the software and total revenues of $7,600,000 during that time. During
2025, revenue of $1,520,000 was recognized.
Required:
1. Prepare a journal entry to record the development costs in each year of 2024 and 2025.
2. Calculate the required amortization for 2025.
Complete this question by entering your answers in the tabs below.
Required Required
1
2
Prepare a journal entry to record the development costs in each year of 2024 and 2025.
Note: If no entry isā¦
QUESTION 30
WKU is doing the following two research projects:Ā
Ā Ā Ā Ā Ā X: Developing identity theft prevention software. The software will be sold in the market.
Ā Ā Ā Ā Ā Y: Cost reimbursement contract with the US Treasury Department. WKU performs a financial fraud
Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā detectionĀ research and it will be reimbursed 250% of the reported costs incurred in the project.Ā Ā
Ā Ā Ā Ā
Ā Ā Ā Ā For each project, WKU incurred both direct and indirect costs.Ā WKU incurred a totalĀ ofĀ $1,000,000Ā indirectĀ Ā costs.Ā Indirect costs are allocatedĀ using a base chosen by WKU.Ā The following information is given:Ā
Ā
Project
Direct costs
Computer time in hours
(CTH)
Pages of all articles read
(PAR)
Lab experimentalĀ hours (LEH)
Number ofĀ assistants used (NAU)
X
Ā Ā $1,000,000
5,000
65,000
1,000
Ā 300
Y
Ā Ā $2,500,000
5,000
35,000
4,000
Ā 500
Ā
Which of the following allocation bases is the best for the benefit of WKU?
Ā
A.
CTH
Ā
B.
LEH
Ā
C.
PARā¦
HW #10 (continued)
JK7 [7 pts] For the satellite contract described in the in-class
exercise, the build plan and spending profile is shown below.
- The contract calls for the following payment profile from the customer
ā¢ Payments = 80% of company expenditures in each year, with an additional
milestone payment of $100M in the year that each satellite is completed
ā¢ Create a spreadsheet to model the full 10-year program and use it to (a)
annual cash flow (b) IRR for the full 7-satellite, 10-year program
1
2
3
4
5
6
7
8
9
10
S1
10%
30%
40%
20%
S2
30%
50%
20%
S3
30%
50%
20%
S4
30%
50%
20%
S5
30%
50%
20%
S6
30%
50%
20%
S7
30%
50%
20%
Chapter 10 Solutions
INTERMEDIATE ACCOUNTING RMU 9TH EDITION
Ch. 10 - Prob. 10.1QCh. 10 - Prob. 10.2QCh. 10 - Prob. 10.3QCh. 10 - Prob. 10.4QCh. 10 - Prob. 10.5QCh. 10 - Prob. 10.6QCh. 10 - When an asset is acquired and a note payable is...Ch. 10 - Explain how assets acquired in exchange for equity...Ch. 10 - Prob. 10.9QCh. 10 - What account is credited when a company receives...
Ch. 10 - Prob. 10.11QCh. 10 - Identify the two exceptions to valuing property,...Ch. 10 - In what situations is interest capitalized?Ch. 10 - Define average accumulated expenditures and...Ch. 10 - Explain the difference between the specific...Ch. 10 - Prob. 10.16QCh. 10 - Prob. 10.17QCh. 10 - Explain the accounting treatment of costs incurred...Ch. 10 - Explain the difference in the accounting treatment...Ch. 10 - Prob. 10.20QCh. 10 - Prob. 10.21QCh. 10 - Prob. 10.22QCh. 10 - Prob. 10.23QCh. 10 - Acquisition cost; machine LO101 Beavert on Lumber...Ch. 10 - Prob. 10.2BECh. 10 - Prob. 10.3BECh. 10 - Cost of a natural resource; asset retirement...Ch. 10 - Asset retirement obligation LO101 Refer to the...Ch. 10 - Prob. 10.6BECh. 10 - Acquisition cost; noninterest-bearing note LO103...Ch. 10 - Prob. 10.8BECh. 10 - Fixed-asset turnover ratio LO105 Huebert...Ch. 10 - Fixed-asset turnover ratio; solve for unknown ...Ch. 10 - Prob. 10.11BECh. 10 - Nonmonetary exchange LO106 Refer to the situation...Ch. 10 - Nonmonetary exchange LO106 Refer to the situation...Ch. 10 - Prob. 10.14BECh. 10 - Prob. 10.15BECh. 10 - Research and development LO108 Maxtor Technology...Ch. 10 - Prob. 10.17BECh. 10 - Research and development; various types LO108...Ch. 10 - Prob. 10.19BECh. 10 - Acquisition costs; land and building LO101 On...Ch. 10 - Acquisition cost; equipment LO101 Oaktree Company...Ch. 10 - Prob. 10.3ECh. 10 - Cost of a natural resource; asset retirement...Ch. 10 - Intangibles LO101 In 2018, Bratten Fitness...Ch. 10 - Goodwill LO101 On March 31, 2018, Wolfson...Ch. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Acquisition costs; noninterest-bearing note ...Ch. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Nonmonetary exchange LO106 [This is a variation...Ch. 10 - Prob. 10.16ECh. 10 - Nonmonetary exchange LO106 [This is a variation...Ch. 10 - Prob. 10.18ECh. 10 - Prob. 10.19ECh. 10 - Prob. 10.20ECh. 10 - FASB codification research LO101, LO106, LO107,...Ch. 10 - Prob. 10.22ECh. 10 - Interest capitalization LO107 On January 1, 2018,...Ch. 10 - Interest capitalization LO107 On January 1, 2018,...Ch. 10 - Interest capitalization; multiple periods LO107...Ch. 10 - Research and development LO108 In 2018, Space...Ch. 10 - Prob. 10.27ECh. 10 - IFRS; research and development LO108, LO109...Ch. 10 - IFRS; research and development LO109 IFRS NXS...Ch. 10 - Prob. 10.30ECh. 10 - Software development costs LO108 Early in 2018,...Ch. 10 - Prob. 10.32ECh. 10 - Intangibles; start-up costs LO101, LO108 Freitas...Ch. 10 - Prob. 10.34ECh. 10 - Prob. 10.1PCh. 10 - Prob. 10.2PCh. 10 - Prob. 10.3PCh. 10 - Prob. 10.4PCh. 10 - Acquisition costs; journal entries LO101, LO103,...Ch. 10 - Prob. 10.6PCh. 10 - Nonmonetary exchange LO106 On September 3, 2018,...Ch. 10 - Prob. 10.8PCh. 10 - Interest capitalization; specific interest method ...Ch. 10 - Prob. 10.10PCh. 10 - Research and development LO108 In 2018,...Ch. 10 - Prob. 10.12PCh. 10 - Judgment Case 101 Acquisition costs LO101, LO103,...Ch. 10 - Research Case 102 FASB codification; locate and...Ch. 10 - Judgment Case 103 Self-constructed assets LO107...Ch. 10 - Judgment Case 104 Interest capitalization LO107...Ch. 10 - Prob. 10.6BYPCh. 10 - Prob. 10.7BYPCh. 10 - Judgment Case 108 Research and development LO108...Ch. 10 - Prob. 10.9BYPCh. 10 - Prob. 10.11BYPCh. 10 - Ethics Case 1012 Research and development LO108...Ch. 10 - Prob. 10.13BYPCh. 10 - Prob. 10.14BYPCh. 10 - Prob. 10.15BYPCh. 10 - Prob. 10.16BYPCh. 10 - Continuing Cases Target Case LO101, LO105 Target...
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