. During the current year, Dangerous company incurred the following costs: Research and development services performed by another entity for Luminous 300,000 Design, construction and testing of preproduction prototype And model 400,000 Testing in search for new product or process alternative 350,000 What total amount should be reported as research and development expense in the current year?
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1. During the current year, Dangerous company incurred the following costs:
Research and development services performed by another
entity for Luminous 300,000
Design, construction and testing of preproduction prototype
And model 400,000
Testing in search for new product or process alternative 350,000
What total amount should be reported as research and development expense in the
current year?
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- Courage Company incurred the following costs in the current year: R and D equipment with useful life of four years in various R and D projects 1800 000 Start – up costs incurred when opening a new product 4 200 000 Advertising expense to introduce a new product. 2 100 000 Engineering costs incurred to advance a product to full production stage but economic viability is not yet achieved 1 200 000 What amount should be recorded as research and development expense?1. Connie Company incurred the following costs during the current year: Design of tools, jigs, molds and dies involving new technology. 2,500,000 Modification of the formulation of process. 3,200,000 Trouble-shooting in connection with breakdowns during commercial production 2,000,000 Adaptation of an existing capability to a particular customer’s need as part of a continuing commercialactivity. 2,200,000 What amount should be reported as research and development expense for the current year?A. 2,500,000 B. 3,200,000 C. 4,700,000 D. 5,700,000Marlin Corporation incurred the following costs during the year ended December 31, 2024:Routine, on-going efforts to refine, enrich, & improve upon the qualities of an existing product 125,000Design, construction, and testing of pre-production prototypes and models 110,000 Quality control during commercial production including routine testing of products 150,000 Laboratory research aimed at discovery of new knowledge 180,000How much did Marlin Corporation incur in 2024 as research and development cost? a. 235,000 b. 275,000 c. 290,000 d. 330,000
- What is the total amount that Bryant Inc. should expense during the year (versus the company capitalizing the costs): 1. Purchased the cost of a patent from another company for $165,500. 2. Incurred $278,900 of Research and Development Costs. 3. Internal costs incurred to create a patent for $105,490. 4. Purchased a tradename for $97,300. 5. Goodwill from purchasing another division for $205,800.Raeann Company incurred the following costs during the current year: Modification to the formulation of a chemical product. 1,350,000 Trouble-shooting of breakdowns during commercial production. 1,500,000 Design of tools, jigs and dies involving new technology. 1,700,000 Seasonal or other periodic design changes to existing products. 1,850,000 Laboratory research aimed to discovery of new technology. 2,150,000 In the income statement for the current year, what amount should be reported as research and development expense? A. 5,200,000 B. 4,700,000 C. 3,850,000 D. 3,350,000LIMBO OBLIVIOUS Co. has the following transactions during the year. • Purchased building to be held as investment property for P4,000,000. Direct costs incurred amounted to P80,000. Costs of day-to-day servicing for the asset totaled P20,000. • Constructed building to be used as investment property. Total costs incurred include the following: Materials, labor, and overhead • Start-up costs • Operating losses Abnormal amounts of wasted materials during P8,000,000 400,000 200,000 construction 80,000 • Land acquired with currently undetermined future use by issuing note payable with face amount of P4,000,000 and a present value of P3,200,000. • Building acquired through finance lease to be rented out under various operating leases. The fair value of the building is P2,120,000 and the present value of minimum lcase payments is P2,000,000. Land to be used as investment property was acquired through exchange. Fair value of asset given up in exchange for the land is P12,000,000. Fair value of…
- During the fiscal year, ABC Company incurred the following costs related to property, plant and equipment: Amount paid to the contractor for the building constructed 12,000,000Building permit fee 120,000Excavation cost 110,000Architect fee 440,000Interest that would have been earned had the money used during theperiod of construction been invested in the money market 330,000Invoice cost of machine acquired, terms 8/10, n/30 6,500,000Freight, unloading and delivery charges for machine acquired 100,000Custom duties and other charges 270,000Allowance and hotel accommodation, paid to foreign techniciansduring installation and test run of machine 520,000Royalty payment on machines purchased (based on units producedand sold) 240,000Cash paid for the purchase of land (none was allocated to oldbuilding) 10,000,000Mortgage assumed on the land purchased 2,000,000Realtor’s commission 650,000Legal fees, realty taxes and documentation expenses 900,000Amount paid to relocate persons squatting on the…Jess Company incurred the following R&D costs during the year: Equipment purchased for current and future projects, 5-year useful life Equipment purchased for current project only, 5-year useful life R&D salaries of current project Legal fees to obtain patent Material and labor costs for prototype product O a. 1300000 O b. 1000000 P 100,000 O c. 1220000 O d. 1060000 200,000 400,000 50,000 Required: What amount should be recognized as R&D expense? 600,000. Milby company incurred the following research and development costs during the current year: Equipment purchased for current and future projects 150,000Equipment purchased for current project only 300,000Research and development salaries of current project 600,000Legal fees to obtain patent 75,000 Material and labor costs for prototype product 900,000 The equipment has a five-year useful life and is depreciated using the straight line method. What total amount should be recognized as research and development expense for current year?
- Earth Company incurred the following costs during the current year: Laboratory research aimed at discovery of new knowledge Design of tools, jigs, molds and dies involving new technology Quality control during commercial production including routine testing Equipment acquired two years ago, having an estimated useful life of five years with no residual value used in various Research and development services performed by Star Company for Earth Company Research and development services performed by Earth Company for Moon Company 750,000 400,000 350,000 R and D Projects 1,500,000 250,000 200,000 What amount of research and development expense should be reported in the current year?Olivia Company was installing new equipment at its production facility and incurred the following costs: Cash price of the equipment, VAT inclusive of 12% 2,800,000 Initial delivery and handling cost 200,000 Cost of site preparation 600,000 Consultant used for advance on the acquisition of equipment 700,000 Interest charges paid to supplier for deferred credit 200,000 Estimated dismantling cost that may be incurred upon retirement 300,000 Operating losses before commercial production 400,000The following information pertains to equipment constructed by a firm for its own use. The construction is finished. Materials used in construction, P 400,000 Labor cost during construction, P 170,000 Fringe benefits on above labor, P 60,000 Incremental overhead due to construction, P 80,000 Interest expense on debt during construction, P 20,000 The interest expense meets the requirements for interest capitalization. The market value of the equipment immediately after construction was completed was P650,000. QUESTION: What is the loss on construction incurred by the firm? zero P 60,000 P 80,000 P 20,000