Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Thomas Plastics is in the process of developing a revolutionary new plastic valve. A new division of the company was formed to develop, manufacture, and market this new product. As of year-end (December 31, 2011), the new product has not been manufactured for sale; however, prototype units were built and are in operation.Throughout 2011, the new division incurred a variety of costs. These costs included expenses (including salaries of administrative personnel) and market research costs. In addition, approximately $500,000 in equipment (estimated useful life of 10 years) was purchased for use in developing and manufacturing the new valve. Approximately $200,000 of this equipment was built specifically for developing the design of the new product; the remaining $300,000 of the equipment was used to manufacture the preproduction prototypes and will be used to manufacture the new product once it is in commercial production.The president of the company, Sally Rogers, has been told that research and development costs must be expensed as incurred, but she does not understand this treatment. She believes the research will lead to a profitable product and to increased future revenues. Also, she wonders how to account for the $500,000 of equipment purchased by the new division. "I thought I understood accounting," she growled. "Explain to me why expenditures that benefit our future revenues are expensed rather than capitalized!"
Required:
Write a one-to two-page report to Sally Rogers explaining the generally accepted accounting principles relevant to this issue. The report should also address the treatment of the equipment purchases.
aracel engineering completed the following transactions in the month of june.a.jenna aracel the owner invested 215000
What types of Internet positions would you expect to see at the company?
which of the following is not an indicator that the customer is likely to have control over a good? a)acceptance the asset B) assets warehouse by seller-affiliated thrird party c) legal litle to the asset
conan and andy decide to form a new corporation ln corp. conan contributes property with a basis of 10000 and a fair
what is cvp analysis? why is this an important analysis for a company to perform?what is the financial budget? describe
What are the objectives of Regulation FD? What are the concerns about this U.S.-based regulation?
on nov. 4 2005 blue company acquired an asset 27.5 year residential real property for 100000 for use in its business.
Prepare closing entries and post these closing entries to the T-accounts. Prepare the post closing trial balance.
zxc firm has the following information to determine predetermine overhead rate for standard costingestimated total
Given that Tesla has consistently generated losses, how has the company managed to survive? Read Tesla's Stockholder Letter for the first quarter of 2015. Tesla repeatedly refers to "non- GAAP" results.
kilgore auto parts reported the following information at december 21 2004. preferred stock 12 1 par 50000 shares
Perez Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No salvage value is received.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd