Hey guys I need help with this assignment for Intermediate Financial Accounting 1. Thanks!

Question #1 (5 marks) 1. SuperIdeas Corp, a publicly accountable entity, incurred the following costs in its research and development division: Materials Labour costs Directly attributable overhead Jan 1 - July 31, 2012 10,000 15,000 Aug 1- Dec. 31, 2012 12,000 32,000 8,000 15,000 At August 1, 2012, SuperIdeas determined that the project was technically feasible but not commercially viable. How much, if any, of the costs can be capitalized for fiscal 2012? A) $0 B) $44,000 C) $59,000 D) $92,000 2 Which statement does not describe the 'successful efforts' method? A) A method of accounting that capitalizes costs of mineral exploration and evaluation only if the outcome is successful. B) A method of accounting that capitalizes costs of mineral exploration and evaluation only if the production is technically feasible. C) A method of accounting that capitalizes costs of mineral exploration and evaluation until the production is successful. D) A method of accounting that capitalizes costs of mineral exploration and evaluation only if the production is commercially viable. 3 Which of the following is not a characteristic of an intangible asset? A) It has no physical substance. B) Its useful life may exceed its legal life. C) It may be amortized using the straight-line method. D) It may be impaired and written off. 4 What criterion differentiates the recognition of a biological asset from the recognition of other assets? A) The entity must control the biological asset. B) The fair value of the biological asset can be reliably measurable. C) Future economic benefits from the biological asset must be probable. D) The cost of the biological asset can be reliably measured. 5 Which statement is not correct? A) Goodwill represents the difference between the purchase price and the fair value of net assets acquired. B) Fair value is the amount at which an item could be sold in an arm's length transaction. C) Economic goodwill differs from accounting goodwill and can be created by branding. D) Fair value is the amount which could be exchanged in an arm's length transaction. Question 2 (4 marks) Forest Company paid $38,000,000 for a warehouse and related assets from a company that was in bankruptcy. The warehouse includes land, building, moving equipment, and heating /ventilation/air conditioning (HVAC) system. An independent appraiser valued these items individually as follows: Requirement: Allocate the purchase price among the assets acquired. Question #3 (6 marks) Listed below are several transactions that occurred during the year. In each case, all the amounts were capitalized to an account called "R and D costs." At the end of the year the company wants this account closed out and the amounts either expensed or capitalized to an asset account called "Development costs." a. During the year $34,000,000 was paid to staff in the research division of a pharmaceutical firm. Supplies used totaled $3,000,000. Rent on the research building totaled $1,000,000. Utilities totaled $1,400,000. Head office allocated $1,500,000 in general overhead to the research division. The total spent on research was $40,900,000. The company is completing five different projects investigating whether five different drug combinations effectively reduce cancer in patients. One of the five drugs was very successful in most cases. Market research shows there is a huge market for this drug. The Board has committed resources to complete the project and market the drug; 10% of the total research staff is working on the successful drug combination. b. During the year $22,000,000 was paid to staff to investigate whether a drug combination was effective for reducing a specific type of cancer. The drug was very successful in most cases. Management is committed to continuing this project and has secured financial and technical resources to see if the drug will prove to be commercially viable. c. Last year $70,000,000 in costs were capitalized as all the development cost criteria were satisfied for a specific drug combination. During the current year a further $10,000,000 was spent that can be directly attributed to this drug's development. Near the end of the year a competitor surprisingly started selling a similar drug. The first-mover advantage of the competing drug seriously challenges the market usefulness and success of the drug this company is researching. Management and the Board are nonetheless financially and strategically committed to launching their drug in 18 months. Requirement: Prepare the journal entry required for each case. Explain your proposed treatment Question 4 (9 marks) Polar Sky Railway (PSR), a transportation company, has substantial investments in property, plant and equipment. In 2011, the company exchanged some of these assets with other companies. [Note: any depreciation expense prior to the following transaction has already been properly recorded.] PSR traded railway tracks running Vancouver-Calgary-Winnipeg to its competitor, High Land Railway, in exchange for the Vancouver-Edmonton-Winnipeg route. PSR received $15 million from High Land because the southern route was shorter. The tracks, originally laid down in the late 19th century, had a cost of $125 million, accumulated depreciation of $90 million, and a fair value of $100 million. The Vancouver-Edmonton-Winnipeg tracks were recorded on High Land's books at a cost of $105 million and accumulated depreciation of $70 million. Requirement: 1. Record the journal entry for the above transaction on PSR's books assuming the transaction does not have commercial substance. 2. Record the journal entry for the above transaction on PSR's books assuming the transaction has commercial substance