Elinore is asked to invest $ 4 comma 900 in a friend's business with the promise that the friend will repay $ 5 comma 390 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $ 5 comma 341 in one year's time. U. S. securities of similar term offer a rate of return of 7%. What is the opportunity cost of capital in this case?

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u. s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u. s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u. s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u. s. gaap balances to ifrs.