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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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