Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
52. Allen Corporation reported research and development costs for 20x4 of $4,000,000. Which of the following is true concerning this balance? a The $4,000,000 represents
52. Allen Corporation reported research and development costs for 20x4 of $4,000,000. Which of the following is true concerning this balance? a The $4,000,000 represents research and development costs for projects which did not prove successful b. Allen had a choice between expensing the $4,000,000 or capitalizing it to an asset account and amortizing it c. The $4,000,000 represents the amount spent on all research and development for 2014. d. Investors do not care how much Allen spent on research and development. c. If Allen uses IFRS, the research and development expense would have been higher than $4,000,000 53. The present value of a payment of $4,000 at the end of 10 years with an assumed interest rate of 5 percent is: a $6,515.61. b. $4,000. c. $2,483.68. d. $32,431.28. e. $2,455.64 54. Winegold Company expects to receive a payment of $20,000 at the beginning of each year for the next 3 years. Assume an appropriate interest rate of 4 percent. Determine the present value of these payments. a. $77,677.60 b. $57,721.80 c. $60,000 d. $17,780 e. $173,165.4 55. Which of the following refers to an equal payment made at the beginning of each period over a period of time? a. Ordinary annuity b. Compounding c. Interest d. Annuity due e. Present value 56. Which of the following refers to an equal payment made at the end of each period over a period of time? a. Ordinary annuity b. Compounding c. Interest d. Annuity duc e. Present value
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started