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Arada [10]
3 years ago
12

Morgan Pharmaceutical spends $50,000 this year in research and development for a new drug to cure liver damage. By the end of th

e year, management feels confident that the new drug will gain FDA approval and lead to higher future sales. What impact will the $50,000 spending have on this year's financial statements?
Business
1 answer:
kenny6666 [7]3 years ago
3 0

Answer:

The impact of spending $50,000 on the research and development for a new drug to to cure liver damage will increase the expenses of the Morgan Pharmaceutical in the years financial statements.

Explanation:

Morgan pharmaceutical is pending $50,000 on he research and development of new drug which can cure the liver damage, from this spending company is expecting that after they have successfully created new drug it will lead to the increase in sales , which will ultimately lead to increase in profits , which then would totally recover the initial cost incurred on research and development but until then these expenses would be shown in the current years financial statement as expenses, and thus would increase the total expenses of the company.

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E-Tech Initiatives Limited plans to issue $500,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All o
Blababa [14]

Answer:

E-Tech Initiatives Limited

Partial balance sheet

as on January 2, 2019

Liabilities

Long term Liabilities

Bond Payable ________________ $500,000

Add: Premium on Bond _________ <u>$10,000   </u>

_____________________________________ $510,000

Explanation:

First Calculate the issuance value

Issuance value = $500,000 x 102% = $510,000

The bond is issued on Premium, Now calculate the premium on bond value

Premium on bond = Issuance value - Premium on Bond

Premium on bond = $510,000 - $500,000

Premium on bond = $10,000

The bond payable value of $500,000 and Premium on the bond aer reported in the long term liability section of balance sheet.

7 0
2 years ago
Certain brand names, such as Kleenex or Xerox, have become _______, because they are so commonly identified with a specific prod
kogti [31]

<u>Answer</u>: Certain brand names, such as Kleenex or Xerox, have become generic name.

<u>Explanation:</u>

Generic name is the term used to refer a product with its brand name rather than the product itself. Kleenex  and Xerox are the brand names of the products. Xerox is photocopying product and Kleenex is the brand name for wet wipes. People commonly use the word Kleenex instead of tissues or wet wipes.

This process can be called as genericization and companies loose their trademarks due to these usage of names. These generic names have wide spread popularity.

7 0
3 years ago
Bren Company sold a car for $17,100. The cost of the car was $37,000 and the depreciation expense was recorded at 10% for five a
fomenos

The loss on the disposal of the car is $-16,200.

The first step is to determine the total depreciation on the car.

Depreciation expense = percentage depreciation x cost of the asset

$37,000 x 0.1 = $3700

The second step is to determine the book value of the car = cost of the car - depreciation

$37,000 - $3700 = $33,300.

The book value is greater than the selling price of the car, so there was a loss on the sale. The third step is to determine the gain on the sale.

Loss = $17,100 - $33,300  = $-16,200

A similar question was answered here: brainly.com/question/24357323

3 0
2 years ago
An industry analysis for manufacturers of a small personal care gadget observed the following characteristics: 1. Industry sales
mina [271]

Characteristics 4 and 5 would be typical of an industry that is in the start-up stage.

Explanation:

  • Following characteristics would be typical of an industry that is in the start-up age :
  • 4. The current penetration rate in the United States is 60% of households and will be difficult to increase.
  • The households between $1 million and $2 million in net worth is given below :
  • $1,000,000 in wealth is near the 88% in America.
  • Around 15,117,804 are households that matched this bracket or more.
  • 5 Manufacturers compete fiercely on the basis of price, and price wars within the industry are common.
  • There are certain strategies which includes
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  • evaluating the competitors,
  • product re-branding,
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3 0
3 years ago
What impact would the fed's raising the interest rate have on any inflationary pressure in the economy?
Licemer1 [7]

People will eventually start cutting back on their spending since increased interest rates result in greater borrowing costs. Then, when the demand for goods and services declines, so does inflation.

Interest and other expenses incurred by an entity in conjunction with borrowing money are referred to as borrowing costs. An asset that requires a significant amount of time to prepare for use or sale qualifies as a qualifying asset.

A qualifying asset's cost includes borrowing expenses that are directly related to its purchase, construction, or production. The expense of other borrowing costs is recognized.

The fundamental tenet of IAS 23 Borrowing Costs is that if borrowing costs can be directly linked to the purchase, development, or production of a qualifying asset, they should be capitalized. Additional borrowing expenses are deducted from profit or loss.

Learn more about borrowing costs here

brainly.com/question/3896224

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8 0
1 year ago
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