How much research and development cost

Assignment Help Accounting Basics

Reference no: EM132694874

Question - Marisa Ltd is involved in a research and development project to creat new diet pill. For the current year ended 30 June 2019 expenditure on the project is as follows:

Research $352,500

Development $750,000

The pill is expected to return profits of $105,000 per year for the 10 years commencing 1 July 2019. Assuming the company uses a straight-line method amortization. This company uses a discount rate of 8 per cent.

Required -

a) How much research and development cost should be expensed in the year to 30 June 2019?

b) How much development expenditure should be amortised in the year to 30 June 2020?

Reference no: EM132694874

Questions Cloud

How is information acquired from various types of networks : How is information acquired from the various types of networks? Describe several tools for network forensics and how the tools function?

Explain costs of quality incurred by canterbury aluminum : Identify and briefly explain TWO (2) costs of quality incurred by Canterbury Aluminum providing an example for each cost. Explain in detail.

Evaluate the need for information technology professionals : Evaluate the need for information technology professionals to have a clear understanding of cyberethics. Describe how various ethical systems have evolved.

Alcoholic beverages inhibit vasopressin secretion : Alcoholic beverages inhibit vasopressin secretion. Given this fact, predict the effect of alcohol on the rate of urine formation.

How much research and development cost : The pill is expected to return profits of $105,000 per year for the 10 years commencing 1 July 2019. How much research and development cost should be expensed

Compute the revenue for the year : The firm sold Capital Stock for $10,000 in cash during the year. Assume expenses for the year were $53,712. Compute the revenue for the year.

Describe the organ system : Describe the organ system you have chosen for the final project in a bulleted list.

How much is the incremental cost or savings : From Bramble's point of view, how much is the incremental cost or savings if the widgets are bought instead of made

Create a demo using a data analytic or bi tool : You have been asked by management (manufacturing, healthcare, retail, financial, and etc. ) to create a demo using a data analytic or BI tool. It is your.

User Account

All Pages