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denis23 [38]
3 years ago
11

PharmY, Inc., is a U.S. GAAP reporter that is in the pharmaceutical industry. In the current year, PharmY incurred expenditures

related to laboratory experiments designed to discover a new drug. The expenditures were as follows:
Laboratory equipment that will be used for this project only $1,000,000
Materials that will be used for this project only 750,000
Wages for employees involved exclusively in the project 500,000
Search the Codification to determine how to record each type of cost. Write a memo to the file to commu- nicate your results
Business
1 answer:
Whitepunk [10]3 years ago
4 0

Answer with Explanation:

Tangible assets fall under the scope of International Accounting Standard IAS-36 Property, Plant and Equipment which says that assets that qualify following conditions, must be capitalized:

  • Assets that have life expectancy of more than a year.
  • Benefits of the Assets are controlled by the entity that will flow towards the company.

Now here, the life expectancy of laboratory equipment is unknown and also that we don't know if the asset can be resold in the market or not. This means, if the asset has life expectancy is no more than a year and that the future benefits will flow towards the company then it must be capitalized otherwise it must be expensed out as per the guidelines of International Accounting Standard IAS-38 Intangible Assets, which says that the research cost prior to the development expenditure must be expensed out.

The other two costs are revenue expenditure and must be expensed out under the name research and development cost as per the guidelines of IAS-38.

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Henry and Rochelle work in the claims department of an insurance company. On Rochelle’s birthday, Henry stops by her cubicle and
Vera_Pavlovna [14]

Answer:

C)

Explanation:

Based on the information provided within the question in this case Rochelle does not have a claim for sexual harassment because her claim would be based on one isolated incident that is not serious enough to warrant undue concern. This is the case since Henry has not made a single advancement towards Rochelle since she declined his date.

8 0
3 years ago
As treasury secretary, Alexander Hamilton Select one: a. wanted to eliminate the national debt. b. opposed the federal governmen
Anna35 [415]

Answer:

C) supported the creation of a national bank.

Explanation:

As the first treasury secretary, Alexander Hamilton supported the creation of a national bank because he believed it would strengthen the national economy, since the country had been recently formed.

He finally succeeded in creating the Bank of the United States in 1791, which was the first national bank of the US. The Bank of the US started operating in 1797 in Philadelphia.

5 0
3 years ago
Mobray Corp. is experiencing rapid growth. Dividends are expected to grow at 24 percent per year during the next three years, 14
White raven [17]

Answer:

$1.25

Explanation:

dividend growth:

year               growth rate        dividends

1                          24%                  Div₁ = 1.24Div₀

2                         24%                  Div₂ = 1.24²Div₀ = 1.5376Div₀

3                         24%                  Div₃ = 1.24³Div₀ = 1.906624Div₀

4                          14%                  Div₄ = 1.906624Div₀ x 1.14 = 2.17355136Div₀

indefinite              8%                  Div₅ = 2.17355136Div₀ x 1.08 = 2.347435Div₀

required rate of return = 10%

current stock price = $86

stock price for terminal growth rate = Div₅ / (10% - 8%) = Div₅ / 2% = 117.3717734Div₀

current stock price = $86 = 1.24Div₀/1.1 + 1.5376Div₀/1.1² + 1.906624Div₀/1.1³ + 2.17355136Div₀/1.1⁴ + 117.3717734Div₀/1.1⁴ = 1.12727Div₀ + 1.27074Div₀ + 1.43247Div₀ + 1.48456Div₀ + 80.1665Div₀ = 85.48154Div₀

$86 = 85.48154Div₀

Div₀ = $86 / 85.48154 = $1.006065

Div₁ = 1.24 x $1.006065 = $1.2475 ≈ $1.25

8 0
3 years ago
Write the interrelationship between education and profession​
Nutka1998 [239]

Explanation:

in order to have a profession you need to get an education first ... if you start out working along side someone,that someone is giving you an education in how to do the job you want to do. if you are planning a profession such as a doctor or a lawyer , prepare yourself for a lot of education..

8 0
2 years ago
Question 7
Katarina [22]
The correct answer would be A
7 0
3 years ago
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