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 How much Brill Company's expense?
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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
How much Brill Company's expense?
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- P Co. incurred the following costs in developing software : Development costs prior to reaching technological feasibility Development cost after reaching technological feasibility Cost of duplicating saleable product to be sold over the life of the software Estimated revenues over three-year total product life Revenue in the first year of product life How much is the total software related expense for the year? P800,000 480,000 9,600,000 24,000,000 8,000,000 Your answer In 20x1, G Co. started to develop a patent. Total costs incurred during the year amounting to P400,000. On January 1, 20x2, the patent was fully developed. Legal and registration cost incurred in registering the patent amounted to P300,000. It was estimated that the patent has a useful life of 25 years. In 20x4, G Co. started to develop a new improved patent to extend the life of the old patent. Development costs totaled P800,000. On January 1, 20x5, the new patent was completed and legal and registration costs incurred…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?What is the total amount that Bryant Inc. should expense during the year (versus the company capitalizing the costs): 1. Purchased the cost of a patent from another company for $165,500. 2. Incurred $278,900 of Research and Development Costs. 3. Internal costs incurred to create a patent for $105,490. 4. Purchased a tradename for $97,300. 5. Goodwill from purchasing another division for $205,800.
- Distinguish between capital and revenue expenditure The following costs were also incurred by Napa Ltd during the financial year ended 30June 20X7: Interest on loan to purchase microcomputer. Cost of software for use with the microcomputer. Cost of customizing the software for use in Napa Ltd.'s business. Cost of paper used by the computer printer. Wages of computer operators. Cost of ribbons used by the computer printer. Cost of adding extra memory to the microcomputer. Cost of floppy disks used during the year. Costs of adding a manufacturer’s upgrade to the microcomputer equipment. Cost of adding air conditioning to the computer room. Required: Classify each of the above as capital expenditure or revenue expenditure.A 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 MEDIASuppose a company has research costs of $115,000 and development costs of $285,000 for the year. Under U.S. GAAP, what amount would be reported as an expense in the current year's Income statement? Multiple Choice $400,000 $115,000 $285,000 $200,000
- 3.1.NhyiraCapital Limited began research into the software it has used over a period. The software hasbeen operational for the generation of economic benefits over the years. The company decided toresearch the development of the software. The company assigned four researchers who were paidR10,000 in total for the period of the research. Transportation and feeding costs incurred in carryingout the research amounted to R4,000. The company further acquired four tablets with researchsoftware for R25,000 each to enable them to ascertain accurate findings.The company’s software is separately identified and has a commercial value. The research wascompleted and there is a need for developing the company’s software. A development cost ofR125,000 was reliably measured and incurred. The economic useful life of the software was estimatedto be 10 years from the date of completing its development. Show how the software and its relatedexpenses are to be capitalized in the financial statements under…Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monitor: Salaries $220,000 Depreciation on R&D facilities and equipment Utilities and other direct costs incurred for the R&D facilities Patent filing and related legal costs Payment to another company for performing a portion of the development work Costs of adapting the new monitor for the specific needs of a 125,000 66,000 22,000 120,000 80,000 customer What amount should Maxtor report as research and development expense in its income statement?The following are the respective costs and revenues incurred by USA company: costs for months 1, 2, 3: $80,000.00, $90,000.00, $100,000.00 Revenues for months 2, 3, 4: $70,000.00, $95,000.00 $105,000.00 The USA company wants to know from you if it has made any profit or not. What will be your answer and explain? Use interest= 12%
- Courage Company incurred the following costs in the current year: R and D equipment with useful life of four years in various R and D projects 1800 000 Start – up costs incurred when opening a new product 4 200 000 Advertising expense to introduce a new product. 2 100 000 Engineering costs incurred to advance a product to full production stage but economic viability is not yet achieved 1 200 000 What amount should be recorded as research and development expense?Required information [The following information applies to the questions displayed below.] The following information is available for Fairmount Industries from year 1 operations: Sales revenue (55,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total cost Operating profits (losses) $ 1,670,000 $ 250,000 555,000 337,000 170,000 181,000 51,000 172,000 20,000 $ 1,735,000 $ (66,000) All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $32,000 will be fully depreciated by the end of year 1 and will not be replaced with new equipment because it is still operating to specification Sales volume is expected to decrease by 2 percent. Sales price is expected to increase by 8 percent. On a per-unit basis, expectations are that materials costs will decrease by…. 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?
