Hall Co. incurred research and development costs in 2011 as follows:Materials used in research and development projectsP 450,000Equipment acquired that will have alternate future uses in future research and development projects3,000,000Depreciation for 2011 on above equipment300,000Personnel costs of persons involved in research and development projects750,000Consulting fees paid to outsiders for research and development projects300,000Indirect costs reasonably allocable to research and development projects 225,000P5,025,000The amount of research and development costs charged to Hall's 2011 income statement should bea.P1,500,000.b.P1,900,000.c.P2,025,000.d.P4,500,000.

Loazia Inc. incurred the following costs during the year ended December 31, 2011:Laboratory research aimed at discovery of new knowledgeP180,000Costs of testing prototype and design modifications45,000Quality control during commercial production, including routine testingof products270,000Construction of research facilities having an estimated useful life of6 years but no alternative future use360,000The total amount to be classified and expensed as research and development in 2011 isa.P555,000.b.P855,000.c.P585,000.d.P285,000.

MaBelle Corporation incurred the following costs in 2010:Acquisition of R&D equipment with a useful life of4 years in R&D projectsP600,000Start-up costs incurred when opening a new plant140,000Advertising expense to introduce a new product700,000Engineering costs incurred to advance a product to fullproduction stage400,000What amount should MaBelle record as research & development expense in 2010?a.P 550,000b.P 740,000c.P1,000,000d.P1,140,000

Leeper Corporation incurred the following costs in 2010:Acquisition of R&D equipment with a useful life of4 years in R&D projectsP800,000Cost of making minor modifications to an existing product140,000Advertising expense to introduce a new product700,000Engineering costs incurred to advance a product to fullproduction stage600,000What amount should Leeper record as research & development expense in 2010?a.P 800,000b.P 940,000c.P1,300,000d.P1,640,000

Logan Company incurred P3,000,000 (P800,000 in 2009 and P2,200,000 in 2010) to develop a computer software product. P1,000,000 of this amount was expended before technological feasibility was established in early 2010. The product will earn future revenues of P8,000,000 over its 5-year life, as follows: 2010 P2,000,000; 2011 P2,000,000; 2012 P1,600,000; 2013 P1,600,000; and 2014 P800,000. What portion of the P3,000,000 computer software costs should be expensed in 2010?a.P500,000.b.P600,000.c.P700,000.d.P2,200,000.

Geller Inc. incurred P500,000 of capitalizable costs to develop computer software during 2011. The software will earn total revenues over its 4-year life as follows: 2011 - P400,000; 2012 - P500,000; 2013 - P600,000; and 2014 - P500,000. What amount of the computer software costs should be expensed in 2011?a.P500,000b.P100,000c.P125,000d.P175,000

Tripiani Inc. incurred P600,000 of capitalizable costs to develop computer software during 2011. The software will earn total revenues over its 5-year life as follows: 2011 - P500,000; 2012 - P600,000; 2013 - P600,000; 2014 - P200,000; and 2015 - P100,000. What amount of the computer software costs should be expensed in 2011?a.P150,000b.P120,000c.P135,000d.P200,000

During 2011, Leon Co. incurred the following costs:Testing in search for process alternativesP 350,000Costs of marketing research for new product250,000Modification of the formulation of a process510,000Research and development services performed by Beck Corp. for Leon425,000In Leon's 2011 income statement, research and development expense should bea.P510,000.b.P935,000.c.P1,285,000.d.P1,535,000.

Riley Co. incurred the following costs during 2011:Significant modification to the formulation of a chemical productP160,000Trouble-shooting in connection with breakdowns during commercial production150,000Cost of exploration of new formulas200,000Seasonal or other periodic design changes to existing products185,000Laboratory research aimed at discovery of new technology225,000In its income statement for the year ended December 31, 2011, Riley should report research and development expense ofa.P585,000.b.P735,000.c.P770,000.d.P920,000.

a(P800,000 4) + P600,000 = P800,000.

105.cP140,000 +P70,000 = P210,000.

*106.c(P1,500,000 P500,000) (P1,000,000 P4,000,000) = P250,000.P250,000 + (P500,000 P400,000) = P350,000.

*107.c(P3,000,000 P1,000,000) (P2,000,000 P8,000,000) = P500,000.P500,000 + (P1,000,000 P800,000) = P700,000.

*108.cP500,000 X = P125,000 (greater than P100,000).

*109.aP600,000 X P500,000 / P2,000,000 = P150,000 (greater than P120,000).

119.cP350,000 + P510,000 + P425,000 = P1,285,000.

120.aP160,000 + P200,000 + P225,000 = P585,000.