Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In 2017, Flounder Corp. has plant equipment that originally cost $145000 and has accumulated depreciation of $40000. A new processing technique has rendered the equipment
In 2017, Flounder Corp. has plant equipment that originally cost $145000 and has accumulated depreciation of $40000. A new processing technique has rendered the equipment obsolete, so it is retired. Which of the following should Flounder do to record the retirement of the equipment? O Increase to Equipment for $145000, increase to Accumulated Depreciation - Equipment for $40000 and a decrease to Loss on Disposal for $105000. O Increase to Loss on Disposal and Accumulated Depreciation - Equipment for $105000. Decrease to Accumulated Depreciation - Equipment for $40000, increase to Loss on Dhposal for S105000, and decrease to Equipment for $145000, o Increase to Loss on Disposal and decrease to Equipment for $105000. A computer company has $3820000 in research and development costs. Before accounting for these costs, the net income of the company is $4600000. What is the amount of net income or loss before taxes after these research and development costs are accounted for? O $780000 net income O Cannot be determined from the information provided. O $3820000 net income O $780000 loss. Ivanhoe Company incurred $880000 of research and development costs in its laboratory to develop a new product. It spent $159000 in legal fees for a patent granted on January 2, 2017. On July 31, 2017, Ivanhoe paid $80000 for legal fees in a successful defense of the patent. What is the total amount of the increased to Patents through July 31, 2017 O $239000 O $1119000 O $880000 O Some other amount
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