1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga55 [171]
2 years ago
10

Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expe

nditures:
Basic research to develop the technology $3,900,000
Engineering design work 1,180,000
Development of a prototype device 590,000
Testing and modification of the prototype 390,000
Legal fees for patent application 79,000
Legal fees for successful defense of the new patent 39,000
Total $6,178,000
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
4. value:
1.92 points
Required information
Required:
1. Determine the amount Satellite Systems should capitalize to the Patent account in the balance sheet.
5. value:
1.92 points
Required information
2. Determine the amount Satellite Systems should report as research and development expense in the income statement.
Business
1 answer:
denis-greek [22]2 years ago
4 0

Answer: See explanation

Explanation:

a. Determine the amount Satellite Systems should capitalize to the Patent account in the balance sheet.

This would be:

Legal fees for application of patent = $79,000

Add: Legal fees for successful defense of new patent = $39000

Total cost = $79000 + $39000 = $118,00

b. Determine the amount Satellite Systems should report as research and development expense in the income statement.

This would be:

Basic research in developing technology = $3,900,000

Add: Engineering design work = $1,180,000

Add: Development of prototype device = $590,000

Add: Testing and modification of prototype = $390,000

Total = $6,060,000

You might be interested in
True or false: Sometimes if a buyer does not want to develop its own supplier certification program, it will accept standard ind
shepuryov [24]

Answer:

True

Explanation:

The ISO 9000 management systems helps organize to meet buyers needs within regulation and requirements related to a service. A industry certifications can be used to hire and train workers.

5 0
2 years ago
According to state agencies that monitor day care facilities, a typical sanitation requirement is that one toilet and handwashin
kompoz [17]
After the word every the answer would be "students"

Final answer,

According to state agencies that monitor day care facilities, a typical sanitation requirement is that one toilet and handwashing fixture be provided for <span>every student</span>


6 0
2 years ago
Which of the following choices is not considered a revenue producing business enterprise?
exis [7]
<span>b. public schools is the answer i did the test.</span>
3 0
3 years ago
2. Explain the strengths of a sole proprietorship and wn
adoni [48]

Explanation:

strengths:

1. He or she enjoys all the profit

2. easy to start up

3. decision making is quick

4.he or she can vary the hours of work

weakness:

1.there is lack of finance

2. lack of specialised staff

3.the owner bears all the risk

4.there is unlimited liability

who might start a sole proprietor business

1. a person that wants to be their own boss.

2.extra income.

3.the entrepreneur might think he will make more money working for his self than others.

6 0
2 years ago
Petrus Framing's cost formula for its supplies cost is $1,840 per month plus $12 per frame. For the month of March, the company
adoni [48]

Answer:

$84 unfavorable

Explanation:

The computation of the activity variance for supplies cost is shown below:

Supplies cost for the standard one is

= $1,840 + (624 frames × $12 per frame)

= $9,328

And, the supplies cost for the actual one is

= $1,840 + (631 frames × $12)

= $9,412

So the activity variance is

= $9,328 - $9,412

= $84 unfavorable

As the standard cost is less than the actual one

6 0
2 years ago
Other questions:
  • Google's mission statement is “to organize the world's information and make it universally accessible and useful.” When the CEO,
    6·1 answer
  • HELP ASAP!! DUE TOMORROW!! WILL MARK AS BRAINLIEST IF ANSWERED NOW!!
    13·1 answer
  • The Digby's workforce complement will grow by 20% (rounded to the nearest person) next year. Ignoring downsizing from automating
    14·1 answer
  • Which change is illustrated by the shift taking place on this graph?
    10·2 answers
  • You purchase fire insurance<br> a. Reduction<br> b. Transfer
    13·1 answer
  • Suppose the economy is initially at potential output and the quantity of aggregate output supplied increases. What information w
    8·1 answer
  • Which of these businesses is in a partnership?
    10·1 answer
  • If investors sell their stocks and increase their money holdings due to a bad economy then is the demand or supply affected?
    5·1 answer
  • What is a flag drop in cab fees?
    8·1 answer
  • R. E. Lee recently took his company public through an initial public offering. He is expanding the business quickly to take adva
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!