. Squarepants 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 75,000 Special equipment to be used solely for the development of Product Y The equipment has no other use and has an estimated useful life of 4 yrs 450,000 Labor and materials costs incurred in producing a prototype 1,500,000 Cost of testing the prototype 600,000 What total amount should be expensed when incurred?
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. Squarepants 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 75,000
Special equipment to be used solely for the development of Product Y
The equipment has no other use and has an estimated useful life of 4 yrs 450,000
Labor and materials costs incurred in producing a prototype 1,500,000
Cost of testing the prototype 600,000
What total amount should be expensed when incurred?
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- 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. 3,500,000Immortality Co. made the following expenditures relating to a newly invented product Legal and registration costs related to a patent on the product 120,000Special equipment used solely on R&D activities for the newly invented product 720,000Depreciation on the special equipment above 180,000Labor and material costs incurred in producing a prototype model 2,400,000Cost of testing the prototype 960,000 Required:What is the total amount of costs that will be expensed when incurred?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. 3,500,000A manufacturer incurs the following costs: $38,000 developing new techniques that will be put in place shortly to cut production costs; $27,000 researching a new process to improve the quality of the standard product and $8,000 on market research into the commercial viability of a new type of product. It is company policy to capitalise costs whenever permitted by IAS 38 Intangible Assets. 9.7 How much should be charged as research and development expenditure in profit or loss? (ignore amortisation) $73,000 $35,000 $27,000 $38,000 A 229ni2ud a yde C BPP EARNING MEDIA. 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?
- 1. During the current year, Dangerous company incurred the following costs:Research and development services performed by anotherentity for Luminous 300,000Design, construction and testing of preproduction prototypeAnd model 400,000Testing in search for new product or process alternative 350,000 What total amount should be reported as research and development expense in thecurrent year?Extra Corporation is installing a new machine at its production facility. It has incurred these costs: Purchase price (including input tax of P300,000) P2,800,000 Initial delivery and handling costs 200,000 Costs of site preparation 600,000 Consultants used for advice on the acquisition of the machine 700,000 Installation and assembly costs 500,000 Costs of testing 100,000 Costs of training employees on how to use the machine 80,000 Estimated dismantling costs to be incurred after 7 years 300,000 Operating losses before commercial production 400,000 The cost of the machine is Group of answer choices P5,200,000 P4,980,000 P4,900,000 P4,200,000Olivia 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 400,000
- Bonus Corporation is installing a new machine at its production facility. It has incurred these costs: Purchase price (including input tax of P300,000) P2,800,000 Initial delivery and handling costs 200,000 Costs of site preparation 600,000 Consultants used for advice on the acquisition of the machine 700,000 Installation and assembly costs 500,000 Costs of testing 100,000 Costs of training employees on how to use the machine 80,000 Estimated dismantling costs to be incurred after 7 years 300,000 Operating losses before commercial production 400,000 The cost of the machine is A. 4,900,000 B. 5,200,000 C. 4,200,000 D. 4,980,000Wolfe Assembly Masters developed a new cost- and time-efficient assembly process that would be advantageous to many manufacturing companies. To protect their process, they applied for and obtained a patent. Which of the following costs associated with the assembly process should Wolfe amortize as an intangible asset? $12,000 in disposal fees to remove hazardous waste collected during research and development $1.56 million in development costs to develop the process $37,000 to apply for a patent for the process $914,000 in research costs to learn about the processMarlin 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