Question
Yahoo! reported the following in its 2013 financial statements (in thousands): December 31, 2013 December 31, 2012 December 31, 2011 Revenues $4,680,380 $4,986,566 $4,984,199 Product
Yahoo! reported the following in its 2013 financial statements (in thousands):
|
| December 31, 2013 | December 31, 2012 | December 31, 2011 |
| Revenues | $4,680,380 | $4,986,566 | $4,984,199 |
| Product development expenditure | $1,008,487 | $885,824 | $919,368 |
Assume that Yahoo! expensed 90% of its product development expenditure.
Required:
- List three types of costs that Yahoo likely includes in the product development line item on the income statement.
- Used FSET to record the product development expenditure of 2013.
- What type of product development expenditure might Yahoo! capitalize?
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
4th Edition
0471730513, 978-0471730514
