your answers. 12 years. b. next year. Classifying expenditures to be capitalized or expensed yodicate whether the following independent expenditures should be capitalized or expensed. Explain Cruz Company spent $500,000 on new equipment. The equipment has an estimated useful life of Carver Corporation spent $5 million researching a new production process. The company expects to reduce operating costs significantly when the result of the research is implemented Kingland Inc. has spent $2 million creating a targeted advertising campaign that will motivate regular customers of the company's on-line service to buy new clothes. d. Hype.com is paying $400,000 for newspaper advertising on its new product line. The company expects the ad will generate increased sales for the next 2 years. Unifying Concepts: The Statement of Comprehensive Income From the following information, prepare a statement of comprehensive income for Moriancumer, Inc., for the year ended December 31, 2018. Assume that there are 37,000 shares of capital stock outstanding C. Gross Sales Revenue. Income Taxes Cost of Goods Sold Sales Salaries Expense Rent Expense (selling) Payroll Tax Expense (selling) Entertainment Expense (selling) Miscellaneous Selling Expenses Miscellaneous General and Administrative Expenses Automobile Expense (selling) Insurance Expense (general and administrative) Interest Expense Interest Revenue Sales Returns .. Advertising and Promotion Expense Insurance Expense (selling) Delivery Expense (selling) Office Supplies Expense (general and administrative) Utilities Expense (general and administrative) Administrative Salaries Expense $4,650,000 96,500 3,205,000 450,000 16,000 5,200 1,500 6,300 5,400 4,000 800 39,900 3,000 8,000 215,000 17,000 3,100 7,200 1,300 200,000 Statement of Comprehensive Income Analysis The following table represents portions of the statements of comprehensive income of Brinkerhoff Company for the years 2017-2019: 2019 2018 2017 S (9) 300 100 (10) Gross sales revenue Sales discounts Sales returns Net sales revenue Beginning inventory Purchases Purchases discounts Freight-in Cost of goods available for sale Ending inventory Cost of goods sold Gross margin Selling expenses General and administrative expenses Income before income taxes Income taxes Net income $56,000 0 0 56,000 (15) 33,400 700 (16) 40,500 6,900 (17) (18) 4,500 (19) 14,300 4,250 (20) 8,700 (11) 400 0 37,800 (12) (13) 20,400 (14) 3,100 14,000 4,200 9,800 $47,600 200 400 (1) (2) 25,000 800 700 (3) (4) (5) (6) (7) 2,800 11,900 (8) 8,400 Required: Fill in the missing numbers. Assume that gross margin is 40% of net sales revenue. Statement of Comprehensive Income Analysis Kline Corporation has taken the following information from the accounting records on December 31, 2018. Prepare an statement of comprehensive income, in good form, for the year ended December 31, 2018. Assume that there are 50,000 shares of capital stock outstanding, Gross sales revenue Income tax expense Insurance expense (general and administrative) Utility expense. Miscellaneous selling expense Payroll tax expense (selling) Rent expense (selling) Sales salaries expense Cost of goods sold. Interest expense. Interest revenue Advertising and promotion expense (selling) Sales returns and allowances. Office supplies expense. Administrative salaries expense Depreciation expense $1,721,500 37,540 950 2,000 6,600 1,550 12,000 150,000 1,270,500 23,000 6,500 80,000 6,000 5,550 70,000 6,000 your answers. 12 years. b. next year. Classifying expenditures to be capitalized or expensed yodicate whether the following independent expenditures should be capitalized or expensed. Explain Cruz Company spent $500,000 on new equipment. The equipment has an estimated useful life of Carver Corporation spent $5 million researching a new production process. The company expects to reduce operating costs significantly when the result of the research is implemented Kingland Inc. has spent $2 million creating a targeted advertising campaign that will motivate regular customers of the company's on-line service to buy new clothes. d. Hype.com is paying $400,000 for newspaper advertising on its new product line. The company expects the ad will generate increased sales for the next 2 years. Unifying Concepts: The Statement of Comprehensive Income From the following information, prepare a statement of comprehensive income for Moriancumer, Inc., for the year ended December 31, 2018. Assume that there are 37,000 shares of capital stock outstanding C. Gross Sales Revenue. Income Taxes Cost of Goods Sold Sales Salaries Expense Rent Expense (selling) Payroll Tax Expense (selling) Entertainment Expense (selling) Miscellaneous Selling Expenses Miscellaneous General and Administrative Expenses Automobile Expense (selling) Insurance Expense (general and administrative) Interest Expense Interest Revenue Sales Returns .. Advertising and Promotion Expense Insurance Expense (selling) Delivery Expense (selling) Office Supplies Expense (general and administrative) Utilities Expense (general and administrative) Administrative Salaries Expense $4,650,000 96,500 3,205,000 450,000 16,000 5,200 1,500 6,300 5,400 4,000 800 39,900 3,000 8,000 215,000 17,000 3,100 7,200 1,300 200,000 Statement of Comprehensive Income Analysis The following table represents portions of the statements of comprehensive income of Brinkerhoff Company for the years 2017-2019: 2019 2018 2017 S (9) 300 100 (10) Gross sales revenue Sales discounts Sales returns Net sales revenue Beginning inventory Purchases Purchases discounts Freight-in Cost of goods available for sale Ending inventory Cost of goods sold Gross margin Selling expenses General and administrative expenses Income before income taxes Income taxes Net income $56,000 0 0 56,000 (15) 33,400 700 (16) 40,500 6,900 (17) (18) 4,500 (19) 14,300 4,250 (20) 8,700 (11) 400 0 37,800 (12) (13) 20,400 (14) 3,100 14,000 4,200 9,800 $47,600 200 400 (1) (2) 25,000 800 700 (3) (4) (5) (6) (7) 2,800 11,900 (8) 8,400 Required: Fill in the missing numbers. Assume that gross margin is 40% of net sales revenue. Statement of Comprehensive Income Analysis Kline Corporation has taken the following information from the accounting records on December 31, 2018. Prepare an statement of comprehensive income, in good form, for the year ended December 31, 2018. Assume that there are 50,000 shares of capital stock outstanding, Gross sales revenue Income tax expense Insurance expense (general and administrative) Utility expense. Miscellaneous selling expense Payroll tax expense (selling) Rent expense (selling) Sales salaries expense Cost of goods sold. Interest expense. Interest revenue Advertising and promotion expense (selling) Sales returns and allowances. Office supplies expense. Administrative salaries expense Depreciation expense $1,721,500 37,540 950 2,000 6,600 1,550 12,000 150,000 1,270,500 23,000 6,500 80,000 6,000 5,550 70,000 6,000