Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 11, Problem 11.7MC
To determine
To identify: The correct option.
Given Information:
Cost of research and development is $300,000.
Research cost is $30,000.
Development cost is 40,000.
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Check out a sample textbook solutionStudents have asked these similar questions
Maribeth Company made the following expenditures relating to Product Zee:
Legal costs to file a patent on Product Zee. Production of the finished product would not have been
undertaken without the patent
100,000
Special equipment to be used solely for development of Product Zee. The special equipment has no
other use and has an estimated useful life of four years
Labor and materials costs incurred in producing a prototype model
Cost of testing the prototype
What total amount of costs should be expensed when incurred?
A. 2,800,000
600,000
2,000,000
800,000
В. 2,950,000
С. 3,400,000
D. 3,500,000
8. Maribeth Company made the following expenditures relating to Product Zee:
Legal costs to file a patent on Product Zee. Production of the finished product would not have been
undertaken without the patent
100,000
Special equipment to be used solely for development of Product Zee. The special equipment has no
other use and has an estimated useful life of four years
Labor and materials costs incurred in producing a prototype model
Cost of testing the prototype
What total amount of costs should be expensed when incurred?
А. 2,800,000
600,000
2,000,000
800,000
В. 2,950,000
С. 3,400,000
D. 3,500,000
Outspoken Company made the following expenditures
relating to Product Y.
Legal costs to file a patent on Product Y. Production
of the finished product would not have been
undertaken without the patent
Special equipment to be used solely for development
of Product Y. The equipment has no other use
and has an estimated useful life of four years.
Labor and material costs incurred in producing
a prototype
Cost of testing the prototype -
100,000
600,000
2,000,000
800,000
What total amount should be expensed when incurred?
a. 2,800,000
b. 2,950,000
c. 3,400,000
d. 3,500,000
Chapter 11 Solutions
Intermediate Accounting
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