ABC Company had the following expenditures related to a software: Costs to develop the software for internal use in ABC's operations (after technological feasibility) P100,000 Cost of market research activities, P75,000 How much costs should be expensed? 175,000 100,000 75,000 0
Q: 1. How much is the adjusted balance of the allowance for doubtful accounts as of December 31, 2005?…
A: Accounts receivable means accounts of those customers to whom business has made credit sales on…
Q: XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain…
A: Using indirect method method for cash flow from operating activities, the non cash expenses or…
Q: Calculate the finance cost recognized in the statement of comprehensive income for the year ended…
A: The lease is a written contract between the two parties. In the lease, one party rents its machinery…
Q: 2. The gift tax payable of Mr. Alba on the July 14 donation is Mr. and Mrs. Alba gave the following…
A: As per Section 98 There shall be levied, assessed, collected and paid upon the transfer by any…
Q: When comparing the lower of cost to market the appropriate market value is determined before…
A: The inventory costing approach known as the lower-of-cost-or-market (LCM) values inventory at the…
Q: On July 1, 2004, Gonzalez Corporation purchased factory equipment for P450,000. Salvage value was…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: ms. In 2021, SHE had provided you, its CPA, with the following information ab activities: ross…
A: Net Taxable Income: It is the income of a company or corporation after deducting the allowable…
Q: he fund that records the payment of principal and interest associated with long-term debt is the…
A: Debt Service Fund- It is used to record the payment of principle and Interest on long term…
Q: Which is not within the definition of an intangible asset? A resource from which future economic…
A: Unlike tangible Assets these Intangible Assets are difficult to valuate
Q: Cost and Costing, as well as the importance of calculating costs in product management, may be…
A: Cost refers to the value of money that has been used to produce or manufacture something. It can…
Q: Problem 10 The adjusted trial balance of Gobyerno Financial Couriers at June 30, 2022, the end of…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Chapter 21 Currently, the unit selling price of a product is $100, the unit variable cost is $75 and…
A: Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…
Q: Which of the following is LEAST likely to be an object of valuation? a. A piece of land owned by the…
A: Valuation is a process by which the correct financial value of an asset or liability is assessed. In…
Q: HASF Inc a distributor of cosmetics throughout Karachi, is in the process of
A: A budget is a quantitative statement showing an estimate of future payments and receivables. A…
Q: 4. Your company is producing 750,000 units a year. All 750,000 units sell for P10 million. If cost…
A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…
Q: A depreciable property costing P2,600,000 with original scrap value of P200,000 after 15 years, had…
A: Here discuss about the details of the annual depreciation expenses which are incurred after the…
Q: Manufacturing Costs: Variable Manufacturing Costs: Direct Materials P 10 per unit 5 Direct Labor…
A: Explanation of Concept Cost is the expenses which have been incurred for production, marketing and…
Q: For purposes of capitalization of borrowing cost, which of the following is not a qualifying asset?…
A: IAS 23 is one of the accounting standard which is used for borrowing costs. This standard specifies…
Q: ft:0:40:48 Elizabeth receives a yearly salary of $59,800. She is paid weekly, and her regular…
A: Salary paid on hourly rate and total salary calculation based on total work hours. Overtime Salary…
Q: S Man runs a small business, MANDLAS, from home. S Man does not keep proper accounting records. He…
A: Balance Sheet- The balance sheet, also known as the statement of financial position, is a financial…
Q: Milo Corporation has two products in its ending inventory, each accounted for at the lower of cost…
A: Designated market value is the middle value of the three components that is the Net realisable…
Q: Prepare Income statement? Grey Grig Ltd Trial Balance as at 30 June 2019 Particulars Equipment…
A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…
Q: Income obtained from the Inc
A: A balance sheet refers to the statement showing the money transactions and property which the…
Q: Microsoft Excel Ele Edit New Insert Format Tools Date Window Help ✔n. Σ 100% BIUR E%-A- E17 A B 1…
A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Required information [The following information applies to the questions displayed below.] Oak Mart,…
A: The income statement is prepared to record revenue and expenses for the current period. Using…
Q: Using the MACRS rates from the following table, what is the book value of a $3,000 computer after 2…
A: Book Value: The cost of holding an asset on a company's balance sheet is equal to its book value,…
Q: STL enters into a 5-year lease of an item of plant on January 1, 2022. The annual rentals are P11.5…
A: Lease Liability It is important to calculate the present value of the lease which can be determine…
Q: QWE Company provided the following information for the current year: Cash, January 1 - P320,000; Net…
A: The question is related to the Cash Flow Statement. Cash Flow Statement is summary of cash receipts…
Q: M2-9 (Algo) Completing T-Accounts LO2-4 Following are the transactions of JonesSpa Corporation, for…
A: T-accounts are the accounts prepared to calculate the balance of each account after transferring all…
Q: What is the purpose served by cost information illustrating it in relation to manufacturing business
A: A manufacturing company is an entity engaged in the production of goods. Manufacturing is about the…
Q: PROBLEM 2 Fleming Sign Company uses the allowance method in accounting for uncollectible accounts.…
A:
Q: 1. Why does the need for an accounting period cause problems?
A: Introduction: An accounting period is the time span during which a company compiles its financial…
Q: Which of the following statements best differentiates multinational firms from domestic firms? a.…
A: A multinational corporation is a company that operates in its home country, as well as in other…
Q: Prior to being united in a business combination, Taunton Inc. and Eubanks Corp. had the following…
A: Stockholders' equity is the amount invested by the owner in the company plus retained earnings. As…
Q: Capital balances and profit and loss sharing ratios of the partners in the Small Entertainment…
A: Lets understand the basics. Partnership is an agreement between two or more person who works…
Q: Prepare income statement Particulars Sales Purchases Salaries Motor expenses Rent Ali Mamat…
A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…
Q: ADC Company provided the following information for 2022: Gain on sale of land - P25,000; Proceeds…
A: Cash flow from investing activities are the cash inflow and cash outflow from investment activities.…
Q: On December 31, 2020, the cash account of Minerva Company has a debit balance of P906,000. An…
A:
Q: The following events took place for Billy Adams Manufacturing Company during January, the first…
A: Income statement is that financial statement which is prepared for reviewing profitability.…
Q: Focused Revision Tam 1 15 QUESTION 1 GAAP AND ACCOUNTING EQUATION (25 marks; 15 minutes) 1.1 GAAP…
A: The accounting equation is made up as follows: assets = capital + liabilities
Q: this is the old way using income summary, i need the new way.
A: Closing Entries - Closing entries are required to close the temporary accounts after making…
Q: Ltd offered for issue ten million ordinary shares of R1 each at 120 cent per share. Applications…
A: Issue of shares is one of the important source of capital being used in business. Shares may be…
Q: Crane Bramble Sales $24,200 $15,900 Allowance for doubtful accounts, Jan. 1 72.0 117 Allowance for…
A: Accounts receivable turnover is one of the efficiency ratio which shows efficiency in collection of…
Q: On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The…
A: Machine loose the value as machine are being used more and more but some time machine failed they…
Q: On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable $…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: Linda, a resident of Canada, owns 100 % of the common shares of both Windsor Retail Ltd. (“WRL”) and…
A: Small business deduction is calculated by multiplying the small business deduction rate for the year…
Q: Which of the following statement is false? The cost of an internally generated patent is confined…
A: The following statement is false: Goodwill is an intangible asset but not under PAS 38.
Q: Current ratio for all the years As Reported Annual Balance Sheet Report Date Scale Assets Cash &…
A: Introduction: Current ratio: It tells the ability of a company to pay its short term obligations…
Q: Required: A. State the impact on the accounting equation for each transaction above. For example:…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
18. ABC Company had the following expenditures related to a software:
Costs to develop the software for internal use in ABC's operations (after technological feasibility) P100,000
Cost of
How much costs should be expensed?
175,000
100,000
75,000
0
Step by step
Solved in 3 steps
- 2. Brill Company made the following expenditures during the current year: Costs to develop computer software for internal use in Brill’s general management information system: 1 000 000 Cost of market research activities 750 000 Brill Company’s total Expense?The total research and development costs of P200,000 incurred to develop the new product is a/an choices postponable cost relevant cost sunk cost avoidable costThe following costs are incurred by Everlasting Corporation in 2022: a. Cost of activities aiming new knowledge P150,000 b. Cost of developing and producing prototype model 30,000 c. Cost of seminars to introduce the newly develop product 120,000 d. Advertisement cost to introduce the newly develop product 60,000 e. Cost incurred for search of alternatives 35,000 f. Cost of final selection of possible alternatives 50,000 g. Cost of machine acquired to be used only in an R&D project 300,000 h. Cost of engineering follow through in an early phase of commercial production 50,000 i. Adaptation of an existing capability to particular customers need 36,000 j. Salaries of employees involved in R&D 480,000 k. Radical modification to the formulation of a chemical product 40,000 l. Laboratory…
- As a result of FASB Statement of Financial Accounting Standards No. 86, "Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed," most software production costs are likely to be a. expensed as R&D costsb. allocated to inventory and expensed to cost of goods sold when the software is soldc. capitalized and amortized over a 40-year periodd. capitalized and amortized over a relatively short period, such as five yearsPW(benefits) PW(operating and maintenance costs) PW(capital cost) Project A £17 000 000 5 000 000 6 000 000 Project B £17 000 000 11 000 000 1 000 000 (a) Compute the benefit-cost ratios for both projects. (b) Compute the modified benefit-cost ratios for both projects. (c) Compute the benefit-cost ratio for the increment between the projects. (d) Compute the present worths of the two projects. (e) Which is the preferred project? Explain.Shanette Company incurred research and development costs in the current year as follows: Equipment acquired for use in various research and development projects Depreciation on the above equipment Materials used 975,000 135,000 200,000 500,000 150,000 250,000 Compensation costs of personnel Outside consulting fees Indirect costs appropriately allocated What is the research and development expense for the current year? A. 850,000 В. 1,085,000 С. 1,235,000 D. 1,825,000
- Lab Uni Berhad has the following development costs in the last 2 years: 2019: RM2,500,000 2020: RM7,000,000 In year 2019, the development cost was written off to the profit and loss statement because the capitalization criteria was not met. In year 2020, the company capitalized the cost. Choose the most CORRECT answer: Select one: O a. Since the recognition criteria was met in year 2020, in the current year, Lab Uni Berhad can reinstate the previously expensed development cost Ob. Lab Uni Berhad cannot reinstate the previously expensed development cost even though the capitalization criteria was met in 2020. OC. Fees to register a legal right to develop the project should not be capitalised in the year 2020 d. Lab Uni Berhad can demonstrate the technical feasibility of completing the development project in 2019.Question I a) Jones Inc. is trying to determine how much to spend on safety equipment for its plant. The first column in the following table gives values for possible expenditures. The second column gives the expected number of worker injuries and the third column gives the expected severity per injury (cost to Jones injury) associated with each expenditure level. How much should Jones spend on safety if it is trying to maximize shareholder value? WURD Loss Control Expenditures $0 $50,000 $100,000 $150,000 $200,000 $250,000 Number of Worker Injuries 200 170 148 130 122 118 Average Injury Severity $8,0006. Determine the maximum operating income possible with the expanded plant. 7. If the proposal is accepted and sales remain at the rrent level, what will the operating income or loss be for the following 103,500,000 x Income
- On January 1, 2025, Waterway Company rearranged its production line to improve efficiency resulting in greater productivity. The costs to rearrange the plant layout amounted to $129000 and the costs to reinstall some of the machinery components were $82000. What amount of these costs should be capitalized? A. $82000 B. $211000 C. $129000 D. $06. Consider the following excerpts from the balance sheet and income statement of Kane Plc. Kane Plc. reports under IFRS. Amounts in £ Capitalized development costs (net) Research expenses* 2,000 350 Amortisation of capitalised development costs 400 *Amounts spent in researching a new drug, whose technological and commercial feasibility has not yet been established. 2022 ANSWER: B 2,300 420 500 2021 If Kane Plc. had to report under U.S. GAAP instead, its income before taxes for fiscal year 2022 would be: a. Higher by £300 b. Lower by £300 c. Lower by £720 d. Lower by £500 e. None of the aboveA3-2 A project has costs and incomes as shown on the diagram in thousands of dollars. C = Capital, OC = Operating Cost, and L= salvage or liqui- dation value of the assets upon termination of the project. I=100 I=250 I=375 I=500 I=500 I=400 C=100 C=500 OC=100 OC=125 OC=150 OC-150 OC=200 0 1 2 3 4 5 6 The investor's minimum rate of return is 15%. Calculate the before- tax cash flow (BTCF) and then determine the ROR, NPV, PVR, and Growth ROR for the project using the 6-year evaluation life. L=100