Reference no: EM132526063

Question 1: Vaugb Co. incurred the follwing costs durinhmg 20x1:

1. Engineering follow-throigh in an early phase of production. 20,000
2. Conceptual formulation and design on possible product or process alternative. 100,000
3. Periodic design changes to existing products. 30,000
4. Radical modification of the design of a product or process. 80,000

How much is the research and developmeny expense in 20x1?

Question 2: Megan Co. incurred the ff. costs during 20x1:

1. Activities directed to the development of knowledge inckuding design and construction engineering of a prototype equipment. 4,800,000
2. Design of tools, jigs, and dies involving new technology. 7,800,000
3. Design, construction and operation of a pilot plant not of a scale economically feasible for commercial production. 5,225,000

How much is the research and development expensebin 20x1?

Question 3: On January 2,20x4 Blue Co. bought a trademark from Pink Inc, for 300,000. The carrying amount of the trademark in Pink Inc's books is 240,000.

Case 1: How much is the amortization expense in 20x4?

Case 2: in addition to the previous facts, an indeoendent research company estimated that the remaining useful life of the trademark was 10 years How much is the amortization expense in 20x4?