Capitalization of certain expenditures

Assignment Help Accounting Basics
Reference no: EM13132723

Which of the following scenarios reflects the correct application of U.S. GAAP for capitalization of certain expenditures as intangible assets?

A) A company's marketing department researches, develops and promotes a completely new name, packaging and design for its main product line, capitalizing $1.8 million in related costs. Previously, the brand had remained unchanged for 45 years.

B) A pharmaceutical company capitalizes cost of $47 million after 5 years of researching and developing a new hair growth pill.

C) A company capitalizes $12 million of research and development costs incurred during the most recent operating cycle.

D) A software company capitalizes $3.9 million in development costs after a working model of its newest product is completed. It is beyond the beta testing stage.

Reference no: EM13132723

Questions Cloud

Most disappointing or frustrating experience : What experience or accomplishment in college or in your community do you take the most pride in or feel you gained the most from? And, what has been the most disappointing or frustrating experience or realization in college or in your community and h..
Calculate unit cost of ending inventory on the balance sheet : Calculate the following. The unit cost of ending inventory on the balance sheet prepared for stockholders. The unit cost of ending inventory on a variable cost balance sheet.
Consciousness-dreams and stimulants : I am writting a report on stimulates, and dreams, and i wanted to know if someone can help me with my grammar, punctuation, and can make my report flow, better, and lastly, give a better conclusion?
Probability first two electric toothbrushes sold-defective : Three defective electric toothbrushes were accidentally shipped to a drugstore by Cleanbrush Products along with 17 nondefective ones. What is the probability the first two electric toothbrushes sold will be defective.
Capitalization of certain expenditures : Which of the following scenarios reflects the correct application of U.S. GAAP for capitalization of certain expenditures as intangible assets?
Explain first two of kuhn goals : Would it be possible for calcor company to achieve the first two of Kuhn’s goals without achieving his third goal of a 30% return on average assets before interest and taxes? Explain
Shakespearean categories : Classifying The Merchant of Venice:The Merchant of Venice is a troublesome play to classify in the usual Shakespearean categories of comedy, history, or tragedy.
Naming compounds containing double and triple bonds : Naming compounds containing double as well as triple bonds, Alkenes contain double bonds while alkynes contain triple bonds. How do you name a compound that has both a double and a triple bond
Component of pension expense : Which of the following is not a component of pension expense under defined benefit plans?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Management of financial institutions questions

Identify two financial intermediaries. What are their respective functions? What are their major roles in the economy? What are the money markets and what are the capital markets? How do they differ? What are their respective activities?

  Discuss the strategic implications

Discuss what these traditional financial statements do well as well as the limitations of these financial statements for valuing information/knowledge age companies.

  Data analysis and trends

This is the data table about my city that I live in 1990 and 2000 and difference 1990 2000 Difference-What information from this table do you find to be most interesting? Give 2 to 4 sentences of explanation.

  Find a business article related to some aspect

In this discussion post you are to discuss either the pro or con of full financial disclosure. You must take a position advocating full disclosure and why this is beneficial for the marketplace and the economy or a position arguing that the associ..

  Which investment produces the greater after tax income

alva can earn 5% before tax interest on a corporate bond or a 4% dividend on a preferred stock. Assuming that the appreciation in value is the same, which investment produces the greater after tax income?

  Identify a list of matters for consideration

The approach the controller recommended is to compare SUPERVALU's revenue recognition accounting policies to three similar companies, one reporting under US GAAP ( Safeway ) and two reporting under IFRS ( Ahold and Loblaw Companies ).

  Journalize the entry to record the payroll for the week

Journalize the entry to record the payroll for the week of December 10. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

  Budegeting and comparison shopping

You are looking into purchasing computer equipment for your at-home business, personal recruiting. Since you are just starting out, you have set an initial budget of 1500.00

  Write a memo to the venture capital partner in charge

The typical skier makes two ski runs per day (uses the lift twice). Ski resorts operate their lifts 8 hours per day, 120 days per year. Gold Mountain plans to sell one-day lift tickets for $60 per skier per day; no season passes will be offered.

  Change in reporting entity

Which of the following accounting treatments is proper for a change in reporting entity?

  What is the earnings conservatism ratio

1. what are the permanent and temporary differences? 2. What is NOL? Why does it occur? 3. What are the allocation methods? 4. What are the deferred tax assets and deferred tax liability? 5. What is the earnings conservatism ratio?

  Expense results with budget expectations

Identify how operating budgets are developed. Compare five to seven expense results with budget expectations, and describe possible reasons for variance.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd