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slega [8]
3 years ago
14

Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2018. Blue had the

following expenses in connection with the project: 2018 2019 Salaries $500,000 $600,000 Materials 90,000 70,000 Insurance 8,000 11,000 Utilities 6,000 8,000 Cost of inspection of materials for quality control 7,000 6,000 Promotion expenses 11,000 18,000 Advertising –0– 20,000 Equipment depreciation 15,000 14,000 Cost of market survey 8,000 –0– The new product will be introduced for sale beginning in July 2020. Determine the amount of the deduction for research and experimental expenditures for 2018, 2019, and 2020 if: Blue Corporation elects to expense the research and experimental expenditures. Blue Corporation elects to amortize the research and experimental expenditures over 60 months.
Business
1 answer:
umka21 [38]3 years ago
7 0

Answer:

There will be no amortized value for for research and experimental expenditures will be considered for the year 2018 and 2019 as new product will be introduced for sale from July 2020.

Explanation:

total available amount of deduction for research and experimental expenditures is:

2018 - $500,000 + 90,000 + 8,000 + 6,000 + 15,000  

   = $619,000

2019- $600,000 + 70,000  + 11,000  + 8,000  + 14,000

          = $703,000

2020 - $0

Amortized value for research and experimental expenditures

= ($619,000+703,000)/60

= $22,033 per month

Amortized value for research and experimental expenditures for 2018

= $0

Amortized value for research and experimental expenditures for 2019

= $0

Amortized value for research and experimental expenditures for 2020 (from july to dec => 6 months)

= $22.033*6

= $132,198

Therefore, There will be no amortized value for for research and experimental expenditures will be considered for the year 2018 and 2019 as new product will be introduced for sale from July 2020.

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For your business to be successful you will need a strategy for beating the competition, that is, a ________.
Natali5045456 [20]
The answer is the letter "B" Competitive Advantage.
5 0
3 years ago
Gonzalez Company has been in business for several years. At the end of the current year, the ledger shows:
Westkost [7]

Answer:

Debit : Bad Debts = $16,370

Credit : Allowance for doubtful debts = $16,370

Explanation:

The question states that bad debts are expected to be 5% of the accounts receivables. This means that it is: $327,400 x 5% = $16,370.

An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. The 5% may be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply a prediction, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.

An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement.

The initial entry for allowance for doubtful debts is incorrect, hence it would have to be corrected before the new amount can be recorded. Correction:

Debit : Allowance for doubtful debts = $7900

Credit : Bad debts = $7900

The accounts will be cancelled off and the new entry can be recorded...

Debit : Bad Debts = $16,370

Credit : Allowance for doubtful debts = $16,370

When the amount is officially declared uncollectible, the allowance for doubtful debts account will be debited and the accounts receivables account will be credited.

6 0
3 years ago
Bryce Corporation has pretax accounting income of $100,000. Bryce has interest on municipal bonds of $7,000. Depreciation for ta
Ket [755]

Answer:

$90,000

Explanation:

It is given that :

The pretax accounting income of Bryce Corporation               100,000

The interest on the municipal bonds                                            - 7,000

The depreciation                                                                            - 5,000

The difference in bad debt expense (3000-1000)                   <u>    +2,000</u>

So the total income of Bryce Corporation                                  $ 90,000                      

4 0
2 years ago
One factor that is usually higher in less developed countries (LDCs) than in developed countries is _____.
USPshnik [31]

Answer:

D) infant mortality

Explanation:

Infant mortality rate (IMR) is a ratio that measures how many infants (children under one year of age) die for every 1,000 live births. The IMR serves as an indicator of how healthy a country's population is.

The countries with the highest IMR are Afghanistan, Somalia, Central African Republic. While the countries with the lowest IMR are Japan, Iceland and Singapore.  

4 0
3 years ago
重
Naddik [55]

Answer:

B. agreements between two or more parties

Explanation:

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Hope this helps :)

8 0
3 years ago
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