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Ira Lisetskai [31]
4 years ago
11

After years of research had been conducted at significant cost, Blanco Chemical Company determined a fertilizer they had been de

veloping was possible to bring to production, intended to do so, and had the means by which to accomplish that. They then spent an additional $5,000,000 in development efforts to obtain a patent.
1.. According to IAS 38 (Intangible Assets), how should Blanco Chemical Company record the $5,000,000?
O as a "Deferred Development Cost" on the Balance Sheet.
O as "Fertilizer Revenue" on the Income Statement.
O as "Development Expense" on the Income Statement.
O It should only be reported in the notes to the financial statements.
Business
2 answers:
navik [9.2K]4 years ago
8 0

Answer:

Development cost" on the balance sheet.

Explanation:

Development costs on balance sheet are capitalised only after technical and commercial feasibility of the asset for sale or use have been established. This means that the entity must intend and be able to complete the intangible asset and either use it or sell it and be able to demonstrate how the asset will generate future economic benefits" or value. Being measured at 500,000, it has the ability to affect the asset.

vodka [1.7K]4 years ago
5 0

Answer:

as a "Deferred Development Cost" on the Balance Sheet.

Explanation:

IAS 38.57 QUOTED

"Development costs are capitalised only after technical and commercial feasibility of the asset for sale or use have been established. This means that the entity must intend and be able to complete the intangible asset and either use it or sell it and be able to demonstrate how the asset will generate future economic benefits"

The cost is measured (500,000) has the intention and resources to complete the asset and is possible to bring into production so it is possible to capitalize it

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Answer: $12,136.67

Explanation:

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Multiple copies of the purchase order are prepared for recordkeeping and distribution with a copy of the purchase order sent to
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Answer:

B. Accounts Payable, Receiving and Inventory Control Department

Explanation:

First, the Multiple Choices

A. Accounts Payable, Receiving, and Stores Control Departments.

B. Accounts Payable, Receiving, and Inventory Control Departments.

C. Accounts Payable, Accounts Receivable, and Receiving Departments.

D. Accounts Payable, Receiving, and Production Planning Departments.

Accounts Payable

The organisation is making a purchase, hence, there will be financial implications and payments that need to be made for the purchase. Therefore Accounts payable is involved

Receiving

The department for receiving the order from the vendor is also crucial, the responsibility of this department is to ensure that all that was ordered and paid for on the purchase order sent to the vendor were delivered. The receiving department will also ensure that there are no defects in the supplied materials.

Inventory Control

Inventory Control is crucial as the department is responsible for ensuring that the optimal level of inventory is supplied and kept per time. The inventory control department should get a copy of the purchase order, compare with available inventory and see the incoming order is adequate for the optimal inventory size for the organisation.

Departments not Involved

Stores Control Department in option A is not involved because stores control takes care of the store in general while inventory control ensures that optimal stock level is maintained.

Accounts Receivable in option C is not involved because money is not coming in

Production Planning in option D is not involved because the company is not planning to produce, it is purchasing.

5 0
3 years ago
A merger where one company purchases another as a way to reduce competition, is an example of a type of market activity that gov
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Answer:

B) antitrust laws

Explanation:

Antitrust laws refer to the laws with respect to the competition and it is established by the U.S government. The motive of this to secure the consumers from that business practices who are dealing in predatory and if this law does not exist then the consumers would not gain i.e from the competition arise in the market place

Therefore according to the given situation, when the government passes the law against so this reflect the antitrust laws

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3 years ago
Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On friday, nitai's employer
Alisiya [41]

Answer: Nitai is better off working over the weekend.  

Explanation:  

When Nitai plans to work over the weekend, she gets $500 out of which she pays $60 (i.e $500*0.12) is tax. So, she is left with $500 - $60 = $440 income. If she pays for her repair which costs her $400 she will be left with $440 - $400 = $40.  

If she does not work over the weekend, she will have no income and she will have to pay no taxes. Neither will she have money to pay for her car repairs.  

So, Nitai is better off working over the weekend as she gets a surplus of $40.  

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Answer:

Causal

Explanation:

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