Rocco Company has created new apps for mobile phones. Its costs during research and development were $375,000. Its costs after the working program was developed were $264,000. Although the company’s copyright may be amortized over 40 years, management believes that the product will be viable for only six years. How should the costs be accounted for? At what value will the apps appear on the balance sheet after one year?
Answer to relevant QuestionsKay Manufacturing purchased land next to its factory to be used as a parking lot. The expenditures incurred by the company were as follows: purchase price, $300,000; broker’s fees, $24,000; title search and other fees, ...Mercy Hospital purchased a special x-ray machine. The machine, which cost $623,120, was expected to last 10 years, with an estimated residual value of $63,120. After two years of operation (and depreciation charges using the ...Kantor Mining Company purchased land containing an estimated 10 million tons of ore for a cost of $4,400,000. The land without the ore is estimated to be worth $800,000. The company expects that all the usable ore can be ...On April 1, 2011, Morimoto Corporation issued $8,000,000 in 8.5 percent, five-year bonds at 98. The semiannual interest payment dates are April 1 and October 1. Prepare journal entries for the issue of the bonds by Morimoto ...Prepare the entry to record income taxes on December 31, 2011, assuming that Jason Corporation’s income tax expense is $120,000 and that it owes $80,000 in income taxes to the government. Prepare the journal entry to ...
Post your question