Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem1: In January, 2007, Sanford Corporation purchased a patent for a new consumer product for $1,200,000. At the time of purchase, the patent was valid for fifteen years. Due to the competitive nature of the product, however, patent was estimated to have a useful life of only ten years. During 2012 the product was permanently removed from market under government order because of a potential health hazard present in the product. What amount should Sanford charge to expense during 20012, suppose amortization is the end of each year?

[A] $120,000

[B] $80,000

[C] $800,000

[D] $600,000

problem2: The intangible assed goodwill may be;

[A] Capitalized only when created internally.

[B] Written off directly to retained earnings.

[C] Capitalized only when purchased.

[D] Capitalized either when purchased or created internally.

problem3: How should research and development costs be accounted for, according to a Financial Accounting Standards Board Statement?

[A] May be either capitalized or expensed when incurred, depending upon the materiality of the amounts involved.

[B] Must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure will have alternative future uses or unless contractually reimbursable.

[C] Must be capitalized when incurred and then amortized over their estimated useful lives.

[D] Must be expensed in the period incurred.

problem4: Wriglee, Company went to court this year and successfully defended its patent from infringement by a competitor. The cost of this defense should be charged to;

[A] Expenses of the period

[B] Patents and amortized over the remaining useful life of the patent

[C] Patents and amortized over the legal life of the patent

[D] Legal fees and amortized over five (5) years or less

problem5: On January 1, 2003, Watts Company purchased a copyright for $600,000, having an estimated useful life of 16 years. In January 2007, Watts paid $90,000 for legal fees in a successful defense of the copyright. Copyright amortization expense for the year ended December 31, 2007, should be:

[A] $43,125

[B] $45,000

[C] $0

[D] $37,500

problem6: Ely Co. bought a patent from Backo Corporation on January 1, 2007, for $180,000. An independent consultant retained by Ely estimated that the remaining useful life is 30 years. Its unamortized cost on Backo's accounting records was $90,000; the patent had been amortized for five (5) years by Backo. How much should be amortized for the year ended December 31, 2007?

[A] $6,000

[B] $12,000

[C] $0

[D] $3,000

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M922706

Have any Question? 


Related Questions in Cost Accounting

Assignment1 the following information is from the

Assignment 1. The following information is from the manufacturing budget and the budgeted financial statements of Fabor Fabrication: Compute the budgeted amounts for: a. Purchases of direct materials during the year. b. ...

Polarisreading the case and answer the all question polaris

Polaris Reading the case and answer the all question: Polaris: Suggested assignment questions Why does the Polaris outsource the manufacture of most components but in-source final assembly? Which manufacturing location o ...

Assignmentdolan products is a small family owned audio

Assignment Dolan Products is a small, family owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers ...

Case questionsmarriott corporation the cost of capital

Case Questions Marriott Corporation: The Cost of Capital (Abridged) 1. What is the weighted average cost of capital for Marriott Corporation? a. What risk-free rate and risk premium did you use to calculate the cost of e ...

Module 3 - slpstrategic choicessimulationin module 3 you

Module 3 - SLP Strategic Choices SIMULATION In Module 3, you will use CVP analysis to inform the pricing of your 3 products. SCENARIO CONTINUATION: You've now completed SLP2, and it the date is (once again) January 1, 20 ...

Instructionsnbspbull all questions carry equal marksbull

Instructions:   • All Questions carry equal marks. • All Questions are compulsory • All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3in not more than 500 words for each subse ...

Assignmentwhile a form of abc was being used by general

Assignment While a form of ABC was being used by General Electric back in the sixties, widespread use of ABC didn't began in the United States until the late eighties. The early focus of ABC was on developing more reliab ...

For your assignment you will apply the fundamental concepts

For your Assignment, you will apply the fundamental concepts of accounting and finance that you are studying to complete several problems indicative to real-world business scenarios and challenges. For this Assignment, t ...

Assignment discussion-cost accumulation systemwhen

Assignment: Discussion-Cost Accumulation System When companies accumulate costs, they generally use either a job-order or a process costing system. The type of system used often varies based on the type of product or ser ...

Cost behaviordetermining cost behavior please respond to

Cost Behavior Determining Cost Behavior: Please respond to one of the following: Option 1 Choose a company that interests you. It could be your current employer, a past employer, or even a future employer. Compare and co ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro