At a board meeting in June 2020, Yes Co's directors made the decision to close down one of its factories by 30 September 2020 and market both the building and the plant for sale. The decision had been made public, was communicated to all affected parties and was fully implemented by 30 September 2020.The directors of Yes Co have provided the following information relating to the closure: • Of the factory's 250 employees, 50 will be retrained and deployed to other subsidiaries within the Yes group during the year ended 30 September 2020 at a cost of P125,000. • The remainder accepted redundancy at an average cost of P5,000 each. • The factory's plant had a carrying amount of P2.2 million, but is only expected to sell for P500,000, incurring P50,000 of selling costs. • The factory itself is expected to sell for a profit of P1.2 million. The company also leased a number of machines in the factory which have an

3.  Paris paid Cherry $333,333 on 12/31/2020 for the exclusive right to market a particular product using the Cherry Co name and logo in promotional material. The franchise follows the rules of Going Concern. Paris also spent $600,000 on 12/31/2020 in developing a new manufacturing process. Its application for a patent is submitted. Paris believes it will be successful In January of 2021 Paris application for a patent was granted.  Legal and registrations costs incurred were $ 210,000.  The patent runs for 20 years.  But the manufacturing process will only be useful to Paris for 10 years What is the impact on net income related to the $210,000 of costs for the patent?

Eucalyptus Ltd has a year end of 31 March 2021. The Directors are planningto close down the company’s London office on 15 June 2021 and haveprovided the following information about the planned restructuring which is valid as at the year end.• The Directors have a detailed plan in place for the closure of the officeon 15 June 2021• Employees who are affected were given full information about theplans via a letter to their home address in January 2021• The Directors can reliably estimate that it will cost them £500,000 tocomplete the restructuringHow would this be treated in the financial statements for the year ended 31 March 2021?a) A restructuring provision would be recognisedb) The London office would be shown as a discontinued operation on theface of the Income Statementc) Nothing would be recognised or disclosed because not all the relevantconditions are satisfiedd) A contingent liability may be disclosed in the notes to the financialstatements, but no provision should be…

Consider the following information from a company's records for 2020: Materials used in research and development projects $4,500 Equipment acquired that will have alternative future uses in future   R&D projects for five years 1,500 Personnel costs of employees involved in R&D projects 5,500 Consulting fees paid to outsiders for R&D projects 2,800 Indirect costs reasonably allocable to R&D projects 250 Legal fees associated with registration of a patent resulting from a 2020 R&D project 2,500 Required:Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income.   $ _______

14.Kandon Enterprises, Inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. Both divisions are considered separate components as defined by generally accepted accounting principles. The horse division has been unprofitable, and, on November 15, 2021, Kandon adopted a formal plan to sell the division. The sale was completed on April 30, 2022. At December 31, 2021, the component was considered held for sale.  On December 31, 2021, the company’s fiscal year-end, the book value of the assets of the horse division was $372,000. On that date, the fair value of the assets, less costs to sell, was $320,000. The before-tax loss from operations of the division for the year was $260,000. The company’s effective tax rate is 25%. The after-tax income from continuing operations for 2021 was $520,000. Required: Prepare a partial income statement for 2021 beginning with income from continuing operations. Ignore EPS disclosures. Prepare a partial…