Below are the selected expenditures incurred by Izzy Bhd during 2020: Items RM 1. Patent 68,000...

 

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Below are the selected expenditures incurred by Izzy Bhd during 2020: Items RM 1. Patent 68,000 2. Research expenses of a new product ZASS 3. Trademark, ZASS 210,000 54,000 4. Development cost of a new product, ZASS 288,000 Required: a) Give: i) ONE (1) transaction incurred during the acquisition of the patent. ii) TWO (2) transactions incurred in developing the trademark, ZASS. iii) THREE (3) transactions incurred in the research phase of a new product, ZASS. iv) THREE (3) transactions incurred in the development phase of a new product, ZASS. b) Briefly explain THREE (3) characteristics of the patent that cause it to be recognized as an intangible asset. ( Explain the differences in accounting treatment for patent and trademark if: i) A patent that has a useful life of 20 years. ii) A trademark that has an unlimited useful life. d) Show the presentation of research and development costs of the new product, ZASS, in the financial statements of Izzy Bhd. on December 31, 2020. Assumes that the development cost can be amortized for 15 years. Below are the selected expenditures incurred by Izzy Bhd during 2020: Items RM 1. Patent 68,000 2. Research expenses of a new product ZASS 3. Trademark, ZASS 210,000 54,000 4. Development cost of a new product, ZASS 288,000 Required: a) Give: i) ONE (1) transaction incurred during the acquisition of the patent. ii) TWO (2) transactions incurred in developing the trademark, ZASS. iii) THREE (3) transactions incurred in the research phase of a new product, ZASS. iv) THREE (3) transactions incurred in the development phase of a new product, ZASS. b) Briefly explain THREE (3) characteristics of the patent that cause it to be recognized as an intangible asset. ( Explain the differences in accounting treatment for patent and trademark if: i) A patent that has a useful life of 20 years. ii) A trademark that has an unlimited useful life. d) Show the presentation of research and development costs of the new product, ZASS, in the financial statements of Izzy Bhd. on December 31, 2020. Assumes that the development cost can be amortized for 15 years.