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hammer [34]
3 years ago
12

Micro Tech, Inc. made the following cash expenditures during current-year related to the development of a new technology which w

as patented at the end of the year:Materials and supplies used - $38,000R&D salaries - 120,000Patent filing fees - 3,000Payments to external consultants - 50,000Purchase of R&D equipment - 140,000
The equipment purchased has no future use beyond the current project. $10,000 of the materials and supplies used and $32,000 in salaries relate to the construction of prototypes. In its current-year financial statements, Micro Tech should report research and development expenses of:
a. $348,000b. $306,000c. $208,000d. $351,000
Business
1 answer:
lilavasa [31]3 years ago
3 0

Answer:

a.$348,000

Explanation:

Research & Development Cost=Materials and supplies+R&D Salaries+Consultant fees+purchase cost of equipment=38,000+120,000+50,000+140,000

=$348,000

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Differential Analysis for a Lease or Buy Decision
il63 [147K]

Answer:

Lease Equipment $150,000

BUY EQUIPMENT$134,700

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Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment

Differential Analysis

Lease (Alt. 1) or Buy (Alt. 2) Equipment

March 15

Lease Equipment (Alternative 1); Buy Equipment

(Alternative 2); Differential Effects (Alternative 2)

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Purchase price $0 $120,000 $120,000

Freight and installation $0 $1,500 $1,500

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