What is the cost of patent?
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Smart Company incurred the following costs in 2021, in relation to developing a machine that will be used in manufacturing a product.
Professional fees paid to consultants to conduct market study-----P 250,000
Fees paid to engineers and experts for initial research-- 150,000
Cost of equipment used for research. The equipment will be used for other research projects. The useful life of the equipment is 5 years----P300,000
Legal fees to obtain patent---P100,000
Licensing fees paid to the patent office --P 25,000
Legal costs paid to defend patent against infringement suit --P 47,000
What is the cost of patent?
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- On January 1, 2019, Sinaran purchased equipment. Following are the costs incurred in connection with the purchase of this equipment: - Purchase price of IDR 500,000,000 plus 10% VAT (IDR 50,000,000) which can be credited - The company pays an independent professional to modify the equipment to fit the specifications desired by the company. The fee paid for professional services is IDR 40,000,000 and for the spare part costs for the modification purposes IDR 10,000,000. - The cost of testing the equipment so that it functions according to its purpose is Rp.25,000,000. - The proceeds from the sale of goods resulting from the testing process are IDR 5,000,000. Requested: Calculate the cost of the equipment according to PSAK 16Globe Company incurred the following costs in 2021, in relation to developing a machine that will be used in manufacturing a product.Professional fees paid to consultants to conduct market study-----P 250,000Fees paid to engineers and experts for initial research-- 150,000Cost of equipment used for research. The equipment will be used for other research projects. The useful life of the equipment is 5 years----P300,000Legal fees to obtain patent---P100,000Licensing fees paid to the patent office --P 25,000Legal costs paid to defend patent against infringement suit --P 47,000What is the cost of patent?Smart Company incurred the following costs in 2021, in relation to developing a machine that will be used in manufacturing a product.Professional fees paid to consultants to conduct market study-----P 250,000Fees paid to engineers and experts for initial research-- 150,000Cost of equipment used for research. The equipment will be used for other research projects. The useful life of the equipment is 5 years----P300,000Legal fees to obtain patent---P100,000Licensing fees paid to the patent office --P 25,000Legal costs paid to defend patent against infringement suit --P 47,000How much is the total R&D expense
- Daggy Company started a research and development project on a new fiber optic cable capable of greaterbandwidth and full duplex voice calls on March 1, 2021. Total cost incurred before reaching technologicalfeasibility amounted to P4,000,000 while development cost after reaching technological feasibility amountedto P5,000,000 before year end.Prior to commercial production, Daggy paid legal and registration fees amounting to P1,000,000 in filing forpatent on the new product on July 1, 2021. Early in January 2022 an additional amount of P2,000,000 wasincurred to develop the project to full manufacturing stage. The patent was approved in early January 2022and valid until December 31, 2041.However, Daddy expected technological advancements will render the new product virtually obsolete byDecember 31, 2026. Daggy planned to develop a new product by that time and apply for a new patent for theupgraded fiber optic cable by the end of 2026. Any capitalized development cost should be amortized…Astrolech Semiconductor incurred the following costs in 2021 related to a new product design: Research for new semiconductor design Development of the new product Legal and filing fees for a patent for the new design $3,720,000 906, 000 115, 000 $4,741,000 Tetal The development costs were incurred after technological and commercial feasibility was established and after the future eco benefits were deemed probable. The project was successfully completed, and the new product was patented before the ene 2021 fiscal yeat Required: 4 Calculate the amount of research and development expense (R&D) AstroTech should eport in its 2021U.S. GAAP income related to this project. 2. Repeat Requirement 1 assuming that Astroledh prepates its financial statements according to International Eimancial Repe Standards (IFRS). Research and development expense under U S. GAAP Research and development expense under IFRSDuring 2019 , Lina Co. incurred the following costs: Testing in search for process alternatives $ 400,000 Costs of marketing research for new product 250,000 Modification of the formulation of a process 501,000 Research and development services performed by Beck Corp. for Leon 325,000 In Lina's 2019 income statement, research and development expense should be
- Cozy Inc. incurred and paid the following costs during the year ended December 31, 2021: Laboratory research aimed at discovery of new knowledge $200,000 Costs of testing prototype and design modifications (economic viability not achieved) 45,000 Quality control during commercial production, including routine testing of products 270,000 Construction of research facilities having an estimated useful life of 6 years but no alternative future use 360,000 The journal entry for the total amount to be classified and expensed as research and development in 2021 is:ABC Co. imported a machine on January 2, 2020 for P550,000. In addition, ABC Co. incurred these costs: import and custom duties: P30,000 non-refundable purchase taxes: P20,000 transportation: P5,000 installing the machine: P2,600 testing and trial run: P3,000 The cost of the machine must be * P550,000 P560,600 P587,600 P610,600 answer not givenABC Co. imported a machine on January 2, 2020 for P550,000. In addition, ABC Co. incurred these costs: import and custom duties: P30,000 non-refundable purchase taxes: P20,000 transportation: P5,000 installing the machine: P2,600 testing and trial run: P3,000 The cost of the machine must be * P550,000 P560,600 P587,600 P610,600
- Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier the special switches used in each of its products. The supplier charged Vista $2 per switch. As an alternative, Vista’s CEO considered purchasing either machine A or machine B so the company could manufacture its own switches. The CEO decided at the beginning of 2019 to purchase machine A, based on the following data: Machine A Machine B Annual fixed cost (depreciation) $ 135,000 $ 204,000 Variable cost per switch 0.65 0.30 Required: 1. Assume that machine A has not yet been purchased. What is the annual volume that would make the company indifferent between the two decision alternatives (i.e., purchasing and then using machine A to make the switches versus purchasing the switches from the outside vendor)? 2. Assume that machine A has already been purchased. Is it preferable to use machine A to make the switches or to purchase the switches from the external…Bonus Corporation is installing a new machine at its production facility. It has incurred these costs: Purchase price (including input tax of P300,000) P2,800,000 Initial delivery and handling costs 200,000 Costs of site preparation 600,000 Consultants used for advice on the acquisition of the machine 700,000 Installation and assembly costs 500,000 Costs of testing 100,000 Costs of training employees on how to use the machine 80,000 Estimated dismantling costs to be incurred after 7 years 300,000 Operating losses before commercial production 400,000 The cost of the machine is A. 4,900,000 B. 5,200,000 C. 4,200,000 D. 4,980,000Vista Company manufactures electronic equipment. In 2018, it purchased from an outside supplier the special switches used in each of its products. The supplier charged Vista $2 per switch. As an alternative, Vista’s CEO considered purchasing either machine A or machine B so the company could manufacture its own switches. The CEO decided at the beginning of 2019 to purchase machine A, based on the following data: Machine A Machine B Annual fixed cost (depreciation) $ 135,000 $ 204,000 Variable cost per switch 0.65 0.30 Required: 1. Assume that machine A has not yet been purchased. What is the annual volume that would make the company indifferent between the two decision alternatives (i.e., purchasing and then using machine A to make the switches versus purchasing the switches from the outside vendor)? 2. Assume that machine A has already been purchased. Is it preferable to use machine A to make the switches or to purchase the switches from the external…