Classic Windows is involved in a research and development project to create a filtering window that...
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Classic Windows is involved in a research and development project to create a filtering window that removes the need for curtains. For the current year ended 30 June 2021 expenditure on the project is as follows: Research $240 000 Development costs $420 000 The window is expected to earn revenues of $70 000 per year for the 8 years commencing 1 July 2021. The average expected return from this type of product is 7% per annum. Assuming straight-line amortisation, how much of the research and development cost should be expensed and what amount should be amortised in the year ended 30 June 2021 (rounded to the nearest dollar)? O Expensed: $276 722; amortisation: $44 785 Expensed: $240 000; amortisation: $52 500 O Expensed: $242 030 amortisation: $52 246 O Expensed: $420 000; amortisation: $52 500 Classic Windows is involved in a research and development project to create a filtering window that removes the need for curtains. For the current year ended 30 June 2021 expenditure on the project is as follows: Research $240 000 Development costs $420 000 The window is expected to earn revenues of $70 000 per year for the 8 years commencing 1 July 2021. The average expected return from this type of product is 7% per annum. Assuming straight-line amortisation, how much of the research and development cost should be expensed and what amount should be amortised in the year ended 30 June 2021 (rounded to the nearest dollar)? O Expensed: $276 722; amortisation: $44 785 Expensed: $240 000; amortisation: $52 500 O Expensed: $242 030 amortisation: $52 246 O Expensed: $420 000; amortisation: $52 500
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Answer Expenses 242030 amortisation 52246 Explanation Tota... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
Posted Date:
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