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    Polytechnic State University Sanluis
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Category > Accounting Posted 14 May 2017 My Price 8.00

Research and development

Research and development

In 2016, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:

The equipment will be used on this and other research projects. Depreciation on the equipment for 2016 is $10,000.

During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.

Required:

Prepare correcting entries that reflect the appropriate treatment of the expenditures.

 

 

Answers

(8)
Status NEW Posted 14 May 2017 06:05 AM My Price 8.00

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Attachments

file 1494743728-1848762_1_636302424764371645_Treatment-of-R-D-expenses.xlsx preview (317 words )
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