Wisdom Company installed a new equipment at the production facility and incurred the following costs: Cost of equipment per supplier's invoice Initial delivery and handling cost Cost of site preparation Consultants used for advice on the acquisition of equipment Interest charges paid to supplier for deferred credit Estimated dismantling cost to be incurred as required by contract 300,000 Operating losses before commercial production 400,000 What total amount should be capitalized as cost of the equipment? 2,500,000 200,000 600,000 700,000 200,000

Candalibra Company incurred the following costs during the year ended December 31, 2018: Laboratory research aimed at discovery of new knowledge $300,000 Costs of testing prototype and design modifications (economic viability not achieved) 55,000 Quality control during commercial production, including routine testing of products 210,000 Construction of research facilities having an estimated useful life of 12 years but no alternative future use 440,000 What is the total amount to be classified and expensed as research and development in 2018 under U.S. GAAP? 79

35.During 2021, King Co. incurred the following costs: Testing in search for process alternatives          720,000 Costs of testing prototype and design  modifications                                                    500,000 Modification of the formulation of a process 1,220,000 Research and development services performed by Queen Corp. for King                  650,000 In King's 2021 statement of profit or loss, research and development expense should be     1,220,000 1,870,000 2,590,000 3,090,000

A Company is trying to decide which one of two contracts it will accept. The costs and revenues associated with each are listed below: Contract revenue Materials Contract X Contract Z $ 260,000 $ 200,000 10,000 10,000 Labor costs 88,000 120,000 Depreciation on 8,000 10,000 equipment Cost incurred for 1,500 1,500 consulting advice Allocated portion of overhead 5,000 3,000 The equipment was purchased last year and has no resale value. Which of these amounts is relevant for the selection of one contract over another? OA. Contract revenue and labor costs OB. Materials, consulting advice, and allocated overhead OC. Cost of consulting advice and allocated overhead OD. Contract revenue, labor costs, depreciation on equipment and allocated portion of overhead OE. None of the above