Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833118
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 11, Problem 11.19BE
To determine
To prepare:
Given information:
Cost of testing material and supplies is $600,000.
Cost of research consultant is $100,000.
Cost of planning and designing consultant is $135,000.
Cost of laboratory equipment is $900,000.
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TLM Technologies had these transactions related to intangible assets during the year.
Jan. 2
Purchased a patent from Luna Industries for $200,000. The remaining legal life of the patent is 15 years, and TLM expects the patent to be useful for 8 years.
Jan. 5
Paid legal fees in a successful legal defense of the patent of $80,000.
June 29
Registered a trademark with the federal government. Registration costs were $11,800. TLM expects to use the trademark indefinitely.
Sept. 2
Paid research and development costs of $500,000.
Required:
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Jan. 2
fill in the blank 3a5c77f4ffe0ff9_2
fill in the blank 3a5c77f4ffe0ff9_3
fill in the blank 3a5c77f4ffe0ff9_5
fill in the blank 3a5c77f4ffe0ff9_6
Jan. 5
fill in the blank 3a5c77f4ffe0ff9_8
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On January 1, 2022, Concord Company purchased the following two machines for use in its production process.
The cash price of this machine was $37,500. Related expenditures also paid in cash included: sales tax $2,000,
shipping costs $150, insurance during shipping $110, installation and testing costs $120, and $100 of oil and
lubricants to be used with the machinery during its first year of operations. Concord estimates that the useful life of
the machine is 5 years with a $4,500 salvage value remaining at the end of that time period. Assume that the
Machine A:
straight-line method of depreciation is used.
The recorded cost of this machine was $180,000. Concord estimates that the useful life of the machine is 4 years
with a $10,000 salvage value remaining at the end of that time period.
Machine B:
(a)
Prepare the following for Machine A. (Round answers to O decimal places, eg. 5,125. List all debit entries before credit entries. Credit
account titles are automatically indented when…
The following costs were incurred by Mark Corporation during 2020:
Legal fees paid to attorneys in connection with a patent application related to a new invention developed by the company's laboratory personnel: $40,000.
Salaries of personnel involved in searching for applications of new research findings: $150,000.
Cost of machinery acquired on January 1, 2020: $355,000. The machinery will be used in a current research and development project, as well as several other R&D projects over the next eight years, after which the machine is expected to be sold for $15,000. Mark Corporation uses straight-line depreciation.
Costs of design, construction, and testing of preproduction prototypes of potential new product lines for the company: $70,000.
Cost of developing a valuable new product that was successfully patented: $100,000.
Cost of marketing research to promote the new product: $60,000.
Required:Calculate the total research and development expense that should appear in Mark's…
Chapter 11 Solutions
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
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