West Coast Growers incurs the following costs during the year related to the creation of a new disease-resistant tomato plant.Salaries for R&D $ 540,000 Depreciation on R&D facilities and equipment 145,000 Utilities incurred for the R&D facilities 7,000 Patent filing and related legal costs 27,000 Payment to another company for part of the development work 13,000What amount should West Coast Growers report as research and development (R&D) expense in its income statement?

West Coast Growers incurs the following costs during the year related to the creation of a new disease-resistant tomato plant.Salaries for R&D $ 540,000 Depreciation on R&D facilities and equipment 145,000 Utilities incurred for the R&D facilities 7,000 Patent filing and related legal costs 27,000 Payment to another company for part of the development work 13,000What amount should West Coast Growers report as research and development (R&D) expense in its income statement?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 46P

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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 MEDIA
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Olivia Company was installing new equipment at its production facility and incurred the following costs: Cash price of the equipment, VAT inclusive of 12% 2,800,000 Initial delivery and handling cost 200,000 Cost of site preparation 600,000 Consultant used for advance on the acquisition of equipment 700,000 Interest charges paid to supplier for deferred credit 200,000 Estimated dismantling cost that may be incurred upon retirement 300,000 Operating losses before commercial production 400,000 Group of answer choices 4,300,000 4,000,000 4,200,000 3,300,000
Western Wholesale Foods incurs the following expenditures during the current fiscal year. Required: How should Western account for each of these expenditures? 1. Salaries for the repair technicians, $147,000 2. Remodeling of the executive offices, $81,600 3. Annual maintenance costs related to its machinery, $73,400 4. Improvement of the production line resulting in an increase in productivity, $31,000 5. Addition of a sprinkler system to the manufacturing facility to reduce the risk of fire damage, $44,700
BW Company has determined that it requires a new treatment facility that would clean polluted water waste from its production facilities. The Cabalo water treatment facility has an estimated useful life of 10 years and can purify that water by dispelling about a million gallons of toxic substances per year. Consider the other data below: Revenue Expenditures Salaries P300,000 Plant facility supplies 240,000 Interest Expense (6% of plant costs 216,000 Repairs and Maintenance (5% of plant costs) 180,000 Depreciation Expense 500,000 Capital Expenditures Plant Facilities P3,600,000 Construction Costs 1,000,000 Overhead 400,000 The company is considering an alternative proposal of creating for another plant facility – Gomez water treatment facility. Gomez plant can be acquired at a costs of P4,000,000. The Gomez facility proposed that 25% reduction in the plant facility supplies costs and salaries. Task:…
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