The Thomas Company is in the process of developing a revolutionary new product. A new division of the company was formed to develop, manufacture, and market this product. As of year-end (December 31, 2020), the product has not been manufactured for resale; however, a prototype unit was built and is in operation.
Throughout 2020, the division incurred certain costs. These costs include design and engineering studies, prototype manufacturing costs, administrative expenses (including salaries of administrative personnel), and market research costs. In addition, $500,000 in equipment (estimated useful life: 10 years) was purchased for use in developing and manufacturing the preproduction prototype and will be used to manufacture the product. Approximately $200,000 of this equipment was built specifically for the design and development of the product; the remaining $300,000 of equipment will be used to manufacture the product once it is in commercial production.
Required:
a. How is research and development defined in Statement of Financial Accounting Standards No. 2?
b. Briefly indicate the practical and conceptual reasons for the conclusion reached by the FASB on accounting and reporting practices for R&D costs.
c. In accordance with SFAS No. 2, how should the various costs of Thomas just described be reported in the financial statements for the year ended December 31, 2017?
Answers: 3
Business, 22.06.2019 10:20, alayciaruffin076
What two things do you consider when evaluating the time value of money
Answers: 1
Business, 22.06.2019 11:20, angeline2004
Stock a has a beta of 1.2 and a standard deviation of 20%. stock b has a beta of 0.8 and a standard deviation of 25%. portfolio p has $200,000 consisting of $100,000 invested in stock a and $100,000 in stock b. which of the following statements is correct? (assume that the stocks are in equilibrium.) (a) stock b has a higher required rate of return than stock a. (b) portfolio p has a standard deviation of 22.5%. (c) portfolio p has a beta equal to 1.0. (d) more information is needed to determine the portfolio's beta. (e) stock a's returns are less highly correlated with the returns on most other stocks than are b's returns.
Answers: 3
Business, 22.06.2019 16:20, AnhQNguyen6764
The following information relates to the pina company. date ending inventory price (end-of-year prices) index december 31, 2013 $73,700 100 december 31, 2014 100,092 114 december 31, 2015 107,856 126 december 31, 2016 123,009 131 december 31, 2017 113,288 136 use the dollar-value lifo method to compute the ending inventory for pina company for 2013 through 2017.
Answers: 1
The Thomas Company is in the process of developing a revolutionary new product. A new division of th...
Physics, 15.11.2021 03:30
Mathematics, 15.11.2021 03:30
History, 15.11.2021 03:30
English, 15.11.2021 03:30
Mathematics, 15.11.2021 03:30
Mathematics, 15.11.2021 03:30
Mathematics, 15.11.2021 03:30
Mathematics, 15.11.2021 03:40