User Account

All Pages

What is the carrying value of the development expenditure

Assignment Help Financial Accounting
Reference no: EM132672537

Booster Company has been researching into new ways of manufacturing their products. The costs and results of a recent project are as follows:

Period                                 Costs                    Description

2010                           P6,000,000            General research

2011 January to June     9,000,000           Development stage 1

2011 July to December   14,000,000        Development stage 2

2012                              Nil                  New process adopted in the factory

Development began in January 2011, but it was only in July 2011 that it became apparent that the process would be successful and that it would save the company a lot of money. The new process will probably be used for ten years from January 2012, saving about P4,000,000 per annum. The process is protected by patent for seven years, after which time most of Booster's rivals will adopt the process.

Problem 1: What is the carrying value of the development expenditure on December 31, 2012?

Reference no: EM132672537

Questions Cloud

Find what is the expected current share price : Assume dividends are expected to grow by 4% in perpetuity. Given this assumption, what is the expected current share price.?
Discuss their views on proper roles of the state : Discuss their views on the proper roles of the state and how they might compare to the US state (government) today.
Compute the lookback interest due or receivable : Swallow Company is a large real estate construction company that has made an S election. Compute the lookback interest due or receivable
Development of the identity of professional counselors : Explain how specific events have influenced the development of the identity of professional counselors.
What is the carrying value of the development expenditure : What is the carrying value of the development expenditure on December 31, 2012? Development began in January 2011, but it was only in July 2011
Aspects of the therapeutic relationship in feminist theory : What are some important aspects of the therapeutic relationship in feminist theory? How does this differ from other theories?
What are the consequences of the total cost : What are the consequences of the total cost of $360 million exceeding the estimated total cost of $300 million. What tax accounting method must Big Boats use
What is the nature of the universe : Based on the required topic study materials, write a reflection about worldview and respond to following: In 250-300 words, explain the Christian perspective.
Why is stress management important : Why is stress management important? How has stress affected your life?

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