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Setler79 [48]
3 years ago
12

Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monito

r:
Salaries $240,000
Depreciation on R&D facilities and equipment 135,000
Utilities and other direct costs incurred for the R&D facilities 68,000
Patent filing and related legal costs 24,000
Payment to another company for performing a portion of the development work 130,000
Costs of adapting the new monito for the specific needs of a customer 82,000
What amount should Maxtor report as research and development expense in its income statement?
Business
1 answer:
Radda [10]3 years ago
3 0

Answer:

Research and development expense is $679,000.

Explanation:

Creation of a new type of personal computer monitor is an internally generated intangible asset.

The Costs directly incurred in developing an internally generated intangible asset are all expensed until the intangible asset is technically physiable for operation.

Research and Development costs are thus expensed.

<u>Calculation of Research and Development Cost</u>

Salaries                                                                                        $240,000

Depreciation on R&D facilities and equipment                         $135,000

Utilities and other direct costs incurred for the R&D facilities  $ 68,000

Patent filing and related legal costs                                            $24,000

Payment to another company for  development work             $130,000

Costs of adapting the new monitor                                             $82,000

Total                                                                                             $679,000

Conclusion :

Research and development expense is $679,000.

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Lawton Company records business transactions in dollars and disregards changes in the value of a dollar over time. Which of the
GenaCL600 [577]

Answer: Monetary unit assumption

Explanation: The monetary unit of assumption states that every transaction of the business can be expresses in relation to monetary units and these units will be stable over time. The key point in this assumption is that it assumes monetary units to be stable and dependable.

In the given case, Lawton records transactions in dollars and disregards changes in value of dollars over time. Hence, we can conclude that Lawton is following monetary unit assumption.

8 0
3 years ago
If you are working on a highly energetic reaction, and you need to evacuate, what should you do
babunello [35]
The answer for this question is: Stabilize the reaction
Chemicals with highly energetic reaction will have more risk to create high-energy force if we somehow fail to contain it safely.
When you need to evacuate, this type of reaction could create an explosion, so it's really advised to stabilize the reaction first.
8 0
3 years ago
According to the CAPM, what is the expected market return given an expected return on a security of 17.2%, a stock beta of 1.6,
seropon [69]

Answer:

Expected market return is 13%

Explanation:

CAPM is used to calculate the expected return on an asset for decision making to add any further asset to a well diversified portfolio. It involves different factors like market risk premium, asset beta and risk free rate as well to calculate a return rate which is expected to obtain from underline asset or investment.

As per given data

Expected return = 17.2%

Stock beta = 1.6

Risk free rate = 6%

According to CAPM

Expected Return on security = Risk free rate + Stock beta ( Market Risk Premium )

17.2% = 6% + 1.6 × ( Market Risk Premium )

17.2% = 6% + 1.6 × ( Market return - Risk free rate )

17.2% = 6% + 1.6 × ( Market return - 6% )

17.2% - 6% = 1.6 × ( Market return - 6% )

11.2% = 1.6 × ( Market return - 6% )

11.2% / 1.6 = Market return - 6%

7% = Market return - 6%

7% + 6% = Market return

Market return = 13%

3 0
3 years ago
Nicky makes $25,000 a year as a sales clerk. He then decides to quit his job to enter a MBA program full-time (assume Nicky does
Mrac [35]

Answer:

40,000

Explanation:

There is no alternative

So the correct answer for this question is 40,000

Total cost= explicit cost + implicit cost=15,000+25,000=$40,000

1: 15,000+25,00 =

2: Answer found

Answer: 40,000

<em><u>Hope this helps.</u></em>

5 0
3 years ago
How do i change the tracks on friday nights funkin, fnf, online game?
saveliy_v [14]

Answer:

you need to click on the tracks button and then you can switch from there

Explanation:

4 0
3 years ago
Read 2 more answers
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