Question
Eve Inc. incurred research and development costs in 2016 as follows: Materials used in research and development projects $ 850,000 Equipment acquired that will have
Eve Inc. incurred research and development costs in 2016 as follows:
Materials used in research and development projects | $ 850,000 |
Equipment acquired that will have alternate future uses in future research and development projects | 3,000,000 |
Depreciation for 2016 on above equipment | 300,000 |
Personnel costs of persons involved in research and development projects | 750,000 |
Consulting fees paid to outsiders for research and development projects | 300,000 |
Indirect costs reasonably allocable to research and development projects | 225,000 |
| $5,425,000 |
Assume economic viability has not been achieved.
The amount of research and development costs charged to Eves 2016 income statement should be $ Answer
Burgio Company purchases Whitney Company for $840,000 cash on January 1, 2016. The book value of Whitney Companys net assets, as reflected on its December 31, 2015 statement of financial position is $620,000. An analysis by Burgio on December 31, 2015 indicates that the fair value of Whitneys tangible assets exceeded the book value by $60,000, and the fair value of identifiable intangible assets exceeded book value by $45,000. How much goodwill should be recognized by Burgio Company when recording the purchase of Whitney Company?
On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store. The following data are available:
Sales, January 1 through April 15 $300,000
Inventory, January 1 50,000
Purchases, January 1 through April 15 250,000
Markup on cost 25%
The amount of the inventory loss is estimated to be $ Answer
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