User Account

All Pages

How much development expenditure should be amortised

Assignment Help Financial Accounting
Reference no: EM132685024

Corona Medical Ltd located in Bundoora is involved in a research and development project to develop a vaccine for Covid-19 virus in Melbourne. For the current year ended 30 June 2020 expenditure on the project is as follows:

Research $900,000

Development $1000,000

This vaccine project is expected to return profits of $100,000 per year for the 10 years commencing 1 July 2020. Assuming the company uses a straight-line method amortisation. This company uses a discount rate of 8 per cent.

Required:

Problem i) How much research and development cost should be expensed in the year to 30 June 2020?

Problem ii) How much development expenditure should be amortised in the year to 30 June 2021?

Problem iii) Prepare the relevant journal entry/entries for amortization expenditure in year to 30 June 2021.

Reference no: EM132685024

Questions Cloud

Describe the impact on individuals and larger world context : Migration and immigration is an age-old process of people moving across borders. Some argue it is detrimental to a country's stability and others say that.
What you have learned regarding impact of social phenomena : First, summarize what you've learned regarding the impact of social phenomena (for instance, social inequality, social deviance, etc.) on the social problem.
Explain the impacts of operating leverage on profitability : They appoint you to be their financial advisor to explain the impacts of operating leverage on profitability of both modern trade store and car engine producer
Presidential Reconstruction-Congressional Reconstruction : What ideas shaped this version of Reconstruction? What did Southern States have to do to regain full standing in the US?
How much development expenditure should be amortised : Prepare the relevant journal entry/entries for amortization expenditure in year to 30 June 2021. How much development expenditure should be amortised
Recessive hereditary condition known as brachydactyly : Question Martha has an autosomal, recessive hereditary condition known as brachydactyly which results in short fingers and toes.
Progress in genetics relies on studies with model organisms : Progress in genetics relies on studies with model organisms. Humans are, of course, more complicated than either of these organisms.
What is the cost of equity-kose inc : Kose, Inc., has a target debt-equity ratio of 1.47. Its WACC is 8.7 percent, and the tax rate is 21 percent. a.b. If the company's cost of equity is 16 percent
What is the standard deviation of an efficient portfolio : What is the standard deviation of an efficient portfolio with a 16% expected return?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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