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1. Accounting for R&D Costs Martinez Company incurred the following costs during 2010 in connection with its research and development activities.
Cost of equipment acquired that will have alternative uses in future R&D projects over the next 5 years(uses straight-line depreciation) $330,000Materials consumed in R&D projects 59,000Consulting fees paid to outsiders for R&D projects 100,000Personnel costs of persons involved in R&D projects 128,000Indirect costs reasonably allocable to R&D projects 50,000Materials purchased for future R&D projects 34,000
Compute the amount to be reported as research and development expense by Martinez on its income statement for 2010. Assume equipment is purchased at the beginning of the year.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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