The process of using resources to produce new capital is______.A.research and developmentB
The process of using resources to produce new capital is______.
A.research and development
B.investment
C.consumption
D.economic growth
The process of using resources to produce new capital is______.
A.research and development
B.investment
C.consumption
D.economic growth
Assoria Co had $20 million of capitalised development expenditure at cost brought forward at 1 October 20X7 in respect of products currently in production and a new project began on the same date. The research stage of the new project lasted until 31 December 20X7 and incurred $1.4 million of costs. From that date the project incurred development costs of $800,000 per month. On 1 April 20X8 the directors of Assoria Co became confident that the project would be successful and yield a profit well in excess of costs. The project was still in development at 30 September 20X8. Capitalised development expenditure is amortised at 20% per annum using the straight-line method. What amount will be charged to profit or loss for the year ended 30 September 20X8 in respect of research and development costs?
A、$8,280,000
B、$6,880,000
C、$7,800,000
D、$3,800,000
A、A customer list
B、A pre-production prototype
C、Goodwill
D、The cost of researching new material
At 30 September 20X9 Sandown Co's trial balance showed a brand at cost of $30 million, less accumulated amortisation brought forward at 1 October 20X8 of $9 million. Amortisation is based on a ten year useful life. An impairment review on 1 April 20X9 concluded that the brand had a value in use of $12 million and a remaining useful life of three years. However, on the same date Sandown Co received an offer to purchase the brand for $15 million. What should be the carrying amount of the brand in the statement of financial position of Sandown Co as at 30 September 20X9? (Answer to the nearest $'000)
A、$12,500
B、$10,000
C、$10,500
D、$12,000
Dempsey Co's year end is 30 September 20X4. Dempsey Co commenced the development stage of a project to produce a new pharmaceutical drug on 1 January 20X4. Expenditure of $40,000 per month was incurred until the project was completed on 30 June 20X4 when the drug went into immediate production. The directors became confident of the project's success on 1 March 20X4. The drug has an estimated lifespan of five years; time apportionment is used by Dempsey Co where applicable. What amount will Dempsey Co charge to profit or loss for development costs, including any amortisation, for the year ended 30 September 20X4?
A、$90,000
B、$92,000
C、$88,000
D、$86,000
A、$597,000
B、$577,000
C、$594,000
D、$548,000
A、Its current market value less costs of disposal
B、The lower of carrying amount and value in use
C、The higher of fair value less costs of disposal and value in use
D、The higher of carrying amount and market value
A、$8 million
B、$10 million
C、$7 million
D、$5 million
Riley Co acquired a non-current asset on 1 October 20W9 (ten years before 20X9) at a cost of $100,000 which had a useful life of ten years and a nil residual value. The asset had been correctly depreciated up to 30 September 20X4. At that date the asset was damaged and an impairment review was performed. On 30 September 20X4, the fair value of the asset less costs of disposal was $30,000 and the expected future cash flows were $8,500 per annum for the next five years. The current cost of capital is 10% and a five-year annuity of $1 per annum at 10% would have a present value of $3.79. What amount would be charged to profit or loss for the impairment of this asset for the year ended 30 September 20X4?
A、$17,785
B、$20,000
C、$30,000
D、$32,215
A、Advances in the technological environment in which an asset is employed have an adverse impact on its future use
B、An increase in interest rates which increases the discount rate an entity uses
C、The carrying amount of an entity's net assets is lower than the entity's number of shares in issue multiplied by its share price
D、The estimated net realisable value of inventory has been reduced due to fire damage although this value is greater than its carrying amount
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