What percentage of the original capitalized cost should be reported as the net amount on Cheese Company's December 31, 2019 statement of financial position, assuming that the pattern of future revenue from the software can be determined reliably, and that the economic benefits expected to be derived from the software is predominantly limited by the expected revenue? а. 90% b. 80% 75% 70% d.
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- On May 1, 2019, a company purchased a new machine that it does not have to pay for until May 1, 2021. The total payment on May 1,2021, will include both principal and interest. Assuming interest at a 10% rate, the cost of the machine would be the total payment multiplied by what time value of money concept? a. future value of annuity of 1 b. future value of 1 c. present value of annuity of 1 d. present value of 1Amortizing Software Development Costs During 2020, the E-Software Company capitalized computer software costs in the amount of $400,000. During 2020, the first year the product is released to sell, sales total $200,000. Estimated future sales for the remaining three-year life (through 2023) of the product are $1,400,000. Record the amount of amortization of capitalized computer development software costs for 2020. Date Account Name Dr. Cr. Dec. 31, 2020 Answer Answer Answer Answer Answer AnswerIn 2020, Lalli Corporation incurred R&D costs as follows:Materials and equipment P100,000Personnel 100,000Indirect costs 50,000P250,000These cost relate to a product that will be marketed in 2021. The Company estimates that these costs will be recouped by December 31, 2024.Required What is the amount of R&D costs expense in 2020?
- Amortizing Software Development Costs During 2020, the E-Software Company capitalized computer software costs in the amount of $4,400,000. During 2020, the first year the product is released to sell, sales total $2,200,000. Estimated future sales for the remaining three-year life (through 2023) of the product are $15,400,000. Record the amount of amortization of capitalized computer development software costs for 2020. Date Account Name Dr. Cr. Dec. 31, 2020 AnswerCashNote ReceivableDiscount on Note ReceivableEquipmentAccumulated DepreciationFranchiseGoodwillPatentSoftware Intangible AssetTrademarkNote PayableDiscount on Note PayableCommon StockPaid-in Capital in Excess of Par—Common StockSales RevenueAmortization ExpenseLegal ExpenseOrganization ExpenseResearch and Development ExpenseSoftware Amortization ExpenseSoftware Development ExpenseGain on saleImpairment LossN/A Answer Answer AnswerCashNote ReceivableDiscount on Note ReceivableEquipmentAccumulated…In 2020, Lalli Corporation incurred R&D costs as follows: Materials and equipment 100,000Personnel 100,000Indirect costs 50,000 P250,000 These cost relate to a product that will be marketed in 2021. The Company estimates that these costs will be recouped by December 31, 2024. RequiredWhat is the amount of R&D costs expense in 2020?In 2020, Lalli Corporation incurred R&D costs as follows:Materials and equipment P100,000Personnel 100,000Indirect costs 50,000P250,000These cost relate to a product that will be marketed in 2021. The Company estimates that these costs will be recouped by December 31, 2024.Required What is the amount of R&D costs expense in 2020? Show the solution step by step
- On January 1, 2019, the Business Info Company had capitalized costs of P6,000,000 for a new computer software product with an estimated useful life of 4 years. Sales for the software product during were P2,400,000 in 2019 and P4,200,000 in 2020. The total sales of the software over the economic life are expected to be P12,000,000. Question: What amount of amortization of computer software should Business Info Company record for the year 2020? а. РО P1,500,000 P1,800,000 P2,100,000 b. C. d.Bebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021?The Slow company has started the construction of an asset on September 1, 2019and finished it on November 1, 2020. The weighted average expenditure ascalculated at the end of the construction in 2020 was: $725,456. In 2020, thecomp had the following outstanding indirect debts:DebtOne-year loan payable taken out on March 31, 2019Two-year note payable Faken out on June 1, 2020Amount$67,000$120,000Annual rate5%7%Assuming there is no direct debt related to this construction, the interest that will becapitalized on indirect debt in 2020 is (calculate ratios to 2 decimal places):a) $47,980b) $45,130Oc) $7,133d) $5,737
- MC47 On January 1, 2019, RMP Innovations, Inc. had capitalized cost of P2,500,000 for a new computer software product with an economic life of 5 years. expected that sales of software during its five year economic life would total P5,000,000. The expected sales in the remaining four Sales for 2019 amounted to P1,500,000. It isBebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021? Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2022. How much would be the claimable input VAT on the second quarter of 2021? Bebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021?In a Nutshell Problem 21 On December 31,2019, Innovation Company sold a machinery costing P5,200,000 which had a carrying amount of P2,200,000 for P3,000,000. The terms of the sales were P600,000 down payment and P1,200,000 payable on December 31 of the next two years. The sale agreement made no mention of interest. However, 9% would be a fair rate for this type of transaction. The present value of an ordinary annuity of 1 at 9% for two years is 1.76. Required: 1. Prepare journal entries for 2019, 2020 and 2021. 2. Determine the carrying amount of the note receivable on December 31,2019, December 31,2020 and December 31,2021 3. Determine the interest income for 2019,2020 and 2021.