Reference no: EM132777888
PROBLEM 1 - On January 1, 2015, XYZ Company registers a patent for a total registration and legal costs of 800,000. XYZ Company estimates that the patent has a remaining useful life of 25 years. How much is the carrying amount of the patent on December 31, 2015?
PROBLEM 2 - XYZ Corp. acquires a building to be leased out under various operating leases. XYZ incurs the following costs on the acquisition:
Purchase Price = 20,000,000
Legal Services and transfer taxes = 20,000
Reimbursements before occupancy = 60,000
Occupancy permit fees = 50,000
Property taxes after occupancy = 16,000
Opening costs (blessing and feng shui) = 1,000,000
What is the initial measurement of the property?
PROBLEM 3 - XYZ incurred the following costs during 2015:
Testing in search for, or evaluation of, product or process alternative = 150,000
Adaptation of an existing capability to a particular requirement of customers need = 210,000
Design construction and testing of pre-production prototypes and models = 310,000
Routine design of tools, molds, and dies = 190,000
How much is the research and development expense in 2020?