[The following information applies to the questions displayed below.) Satellite Systems modified its model 22 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Development of a prototype device Testing and modification of the prototype Legal fees for patent application Legal fees for successful defense of the new patent Total $3,200,000 1,040,000 520,000 320,000 72,000 32,000 $ 5,184,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized. Exercise 7-7 (Algo) Part 3 3. What are the basic criteria for determining whether to capitalize or expense intangible related costs? a. The costs of purchased intangible assets are usually b. The costs of internally developed intangible assets are usually

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Q: what the difference between accounting income and economic income?

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Q: Required information Skip to question [The following information applies to the questions displayed…

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Q: Distinguish between Income and Expenditure Account and Receiptand Payment Account.

A: Difference between income and expenditure account and receipt and payment account:

Q: Define income statement.

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Q: Define Proprietorship

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