D Question 6 Gamma Corporation incurred the following costs during 2022: Laboratory research aimed at discovery of new knowledge Costs of testing prototype and design modifications Quality control during commercial production Purchase, on January 1, of a research facility having an estimated useful life of 6 years What amount would Gamma report for Research and Development expenses in 2022? $405,000 O $705,000 O $615,000 $270,000 $75,000 $270,000 $360,000 $975,000
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- 13 The following costs are incurred by Everlasting Corporation in 2022: a. Cost of activities aiming new knowledge P150,000 b. Cost of developing and producing prototype model 30,000 c. Cost of seminars to introduce the newly develop product 120,000 d. Advertisement cost to introduce the newly develop product 60,000 e. Cost incurred for search of alternatives 35,000 f. Cost of final selection of possible alternatives 50,000 g. Cost of machine acquired to be used only in an R&D project 300,000 h. Cost of engineering follow through in an early phase of commercial production 50,000 i. Adaptation of an existing capability to particular customers need 36,000 j. Salaries of employees involved in R&D 480,000 k. Radical modification to the formulation of a chemical product 40,000 l. Laboratory…E 12-9 Research and Development Cost In 2019, Lalli Corporation incurred R&D costs as follow: Materials used from inventory 100,000 Personnel in R&D lab 100,000 Allocation of the cost of utilities and maintenance costs of the R&D facility 50,000 These costs relate to a product that will be marked in 2020. The company estimates tht these costs will be recouped by December 31, 2020. Required: 1. What is the amount of R&D cost expensed in 2019? 2. Would your answer change if the materials were purchased and not used or if the utilities and maintence costs were related to the corporate offices?Should WMM lease or construct their own production facility Option 1: Construct Costs to incur: Actual expenditure towards buying land, construct building and getting ready for use $ 500,000Taxes, insurance, and repairs (per year) $ 20,000Intended years of use 18Projected market value in 18 years $ 1,000,000 Budgeted maximum expenditure towards buying land, construction of building and getting ready for use. $ 500,000Remainder in four payments of; $ 175,000Option 2: LeaseIntended years of use 18First lease payment due now $ 100,000Rest of the lease payments…
- Materials used in research and development projects $4,500 Equipment acquired that will have alternative future uses in future R&D projects for five years 1,500 Personnel costs of employees involved in R&D projects 5,500 Consulting fees paid to outsiders for R&D projects 2,800 Indirect costs reasonably allocable to R&D projects 250 Legal fees associated with registration of a patent resulting from a 2020 R&D project 2,500 Required: Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income.$fill in the blank 1a- At 10%, find PW for the following Table Warehouse cost equipment cost Installation cost Annual maintenance costs Annual Revenues Salvage Machine life 0 1 2 3 -90,000 b- A project with an IRR = 20%, it has the following NCF (S) X X 4000 (SUS) 50,000 46.000 Find X? 6,500 8,000 45,000 15,000 15 years36 Determine the capitalized cost of a research laboratory which requires P5,000,000 for original construction; P100,000 at the end of every year for the first 5 years and then P147,980 each year thereafter for operating expenses, and P500,000 every 6 years for replacement of equipment with interest at 12% per annum? A. 6,441,350 B. 6,067,015 C. 6,632,445 D. 6,573,650 E. None of the above
- Given the two machines' data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value Annual operation 2,000.00 3,000.00 2,400.00 Annual maintenance 1,200.00 1,000.00 Taxes and insurance 3% 3% Life, years 10 15 Money is worth at least 16% Using equivalent uniform annual cost method, determine the value of alternative A and alternative B: ANSWER for ALTERNATIVE A: Blank 1 ANSWER for ALTERNATIVE B: Blank 2Question 12 research laboratory which requires P5,000, 000 for original Determine the capitalized cost of construction; P100, 000 at the end of every year for the first 5 years and then P120, 000 each year thereafter f or operating expenses, and P500,000 every 6 years for replacement of equipment with interest at 12% per annum? OA6,441,350 O B.6,067,015 OC 6,632,445 8,573,650ס E, None of the above Question 12 of 50 A Moving to another question will save this response. acer PrtSc Pause Del Home Pg U F7 F8 F9 F10 F11 F12 F3 F4 F5 F6 SysRq Scr Lk Break Ins DIO Backspace 7 8.[The following information applies to the questions displayed belad Project Y requires a $321,000 investment for new machinery wityy vifour-year life and no salvage value. The project yield owing annual results. Cash flows occur evenly withit veach year. ( Annual Asounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Incone 2. Determine Project Y's payback period Project Y Project Y Numerator: Initial investment $ 3. Compute Project Y's accounting rate of return Not present value Payback Period T Denominator: 7 Annual net cash flow Numerator 321,000 $ 180,000 Accounting Rate of Return Denominator Net Cash Flows Present Value of Annuity at a Project Y $ 375,000 80,250 4. Determine Project Y's net present value using 7% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar) S $ 99,750…
- 4. A company is considering one of the following 3 mutually exclusive alternatives. Project Initial Investment operating Cost per year Revenue per year Salvage value Life (years) A B $63,000.00 $61,000.00 $15,000.00 $11,000.00 $38,000.00 $26,000.00 $12,000.00 $17,500.00 6 4 C $85,000.00 $13,000.00 $35,000.00 $16,000.00 12 If the company uses a MARR of 8%, which of the alternatives will they select using Present Worth Analysis?The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data Useful Life, Years First Cost Salvage Value Annual Benefit M&O M&O Gradient X 17 $2,090,000 $87,000 $396,000 $56,000 $9,000 X-TRUD 13 $2,610,000 $93,000 $534,000 $60,000 $11,000 SUPR-X 11 $2,430,000 $119,000 $638,000 $53,000 $13,000 The company's interest rate (MARR) is 21%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis and provide the right reason. Choosing SUPR-X is best because it has the lowest M&O cost in yr1 Choosing SUPR-X is best because it has the highest Annual Benefit Choosing SUPR-X will maximize the EUAB-EAUC; its value is $-127,486 higher than X and $15,650 higher than X-TRUD. Choosing SUPR-X will maximize the EUAB-EAUC; its value is $117,514 higher than X and $126,650 higher than X-TRUD.Project Description Initial Cost Annual Revenue ($1000s) ($1000s) $44 A Replace equipment to reduce labor costs 200 B. Overhaul equipment to 150 $36 reduce material costs Replace Equipment to reduce defective parts Change packaging to reduce shipping costs 120 $29 D 100 $25 ACME, Inc. is evaluating four proposals to increase their earnings. The initial costs and annual revenues are shown in the table below. If they have $300,000 in capital available to invest in these projects, what would ACME's rate of return be if they pursued Project A? Assume a common study period of 10 years. Show all work.