INTERMEDIATE ACCOUNTING
10th Edition
ISBN: 9781264023356
Author: SPICELAND
Publisher: MCG
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Textbook Question
Chapter 10, Problem 10.33E
Intangibles; start-up costs
• LO10–1, LO10–8
Freitas Corporation was organized early in 2018. The following expenditures were made during the first few months of the year:
| Attorneys’ fees in connection with the organization of the corporation | $ 12,000 |
| State filing fees and other incorporation costs | 3,000 |
| Purchase of a patent | 20,000 |
| Legal and other fees for transfer of the patent | 2,000 |
| Purchase of equipment | 30,000 |
| Pre-opening salaries and employee training | 40,000 |
| Total | $107,000 |
Required:
Prepare a summary
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Use the following to answer questions 31 – 32
Last year T, Inc., had the following expenditures related
to developing its trademark:
General advertising costs
$224,000
Advertising specifically focused on trademark
Legal fees to register trademark
45,600
550
Legal fees for successful defense of new trademark
75,000
Total $345,150
During your year-end review of the accounts related to
intangibles, you discover that the company has capitalized
all the above as costs of the trademark. Management
contends that all the costs increase the value of the
trademark and, therefore, should be capitalized.
31. Which of the above costs should NOT be capitalized?
32. $
What is the total cost that should be
capitalized to the trademark account?
Chapter 7
Page 7-1
Problem 25-4 (IAA)
Molave Company had the following outstanding loans during
2020 and 2021.
Specific construction loan
General loan
3,000,000
25,000,000
10%
12%
The entity began the self-construction of a new building on
January 1, 209 and the building was completed on June 30,
2021. The following expenditures were made:
1, 2020
1, 2020
December 1, 2020
1, 2021
4,000,000
5,000,000
3,000,000
6,000,000
January
April
March
Required:
1. Compute the cost of the new building on December 31,
2020 and June 30, 2021.
2. Compute the interest.expense for 2020 and 2021.
Materials used in research and development projects
$4,500
Equipment acquired that will have alternative future uses in future
R&D projects for five years
1,500
Personnel costs of employees involved in R&D projects
5,500
Consulting fees paid to outsiders for R&D projects
2,800
Indirect costs reasonably allocable to R&D projects
250
Legal fees associated with registration of a patent resulting from a 2020 R&D project
2,500
Required:
Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income.$fill in the blank 1
Chapter 10 Solutions
INTERMEDIATE ACCOUNTING
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 - Prob. 10.8BECh. 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. 10.18BECh. 10 - Prob. 10.19BECh. 10 - Research and development; various types LO108...Ch. 10 - Prob. 10.21BECh. 10 - Acquisition cost; equipment LO101 Oaktree Company...Ch. 10 - Prob. 10.3ECh. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Acquisition costs; noninterest-bearing note ...Ch. 10 - Prob. 10.11ECh. 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. 10.30ECh. 10 - Prob. 10.31ECh. 10 - Prob. 10.32ECh. 10 - Intangibles; start-up costs LO101, LO108 Freitas...Ch. 10 - Prob. 10.1PCh. 10 - Prob. 10.4PCh. 10 - Acquisition costs; journal entries LO101, LO103,...Ch. 10 - Prob. 10.6PCh. 10 - Prob. 10.8PCh. 10 - Prob. 10.9PCh. 10 - Judgment Case 101 Acquisition costs LO101, LO103,...Ch. 10 - Judgment Case 104 Interest capitalization LO107...Ch. 10 - Prob. 10.6DMPCh. 10 - Prob. 10.7DMPCh. 10 - Judgment Case 108 Research and development LO108...Ch. 10 - Prob. 10.9DMPCh. 10 - Prob. 10.11DMPCh. 10 - Prob. 10.13DMPCh. 10 - Prob. 10.15DMPCh. 10 - Prob. 10.16DMP
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