(a) twelve, 13, 15, 16, 18, 19, 23
(b) 1 . Long-term investments in the balance sheet.
2 . Real estate, plant, and equipment in the balance sheet.
several. Research and development expense in the salary statement. 4. Current advantage (prepaid rent) in the balance sheet.
5. Property, plant, and equipment inside the balance sheet.
6th. Research and development expenditure in the income statement. 7. Charge while expense in the income statement.
8. Operating losses inside the income affirmation.
9. Impose as expenditure in the income statement.
14. Not recorded; any costs related to creating goodwill received internally must be expensed.
12. Research and development expense in the income assertion. 14. Research and development expense inside the income statement. 18. R and d expense inside the income affirmation. 20. R and d expense in the income affirmation. 21. Long term investments, or perhaps other assets, in the "balance sheet". 22. Expensed in the income statement.
1 ) Alatorre should report the patent at $600, 1000 (net of $400, 1000 accumulated amortization) on the balance sheet. The calculation of built up amortization is really as follows.
Retirement for 2005 and 06\ ($1, 1000, 000/10) Back button 2 $200, 000
3 years ago amortization: ($1, 000, 1000 вЂ“ two-hundred dollar, 000) Г· (6 вЂ“ 2) two hundred, 000 Accrued amortization, 12/31/07 $400, 000
2 . Alatorre should cede the operation over its estimated beneficial life. Since it is uncertain that Alatorre should be able to retain the operation at the end of 2015, it ought to be amortized over 10 years. The amount of amortization for the franchise intended for the year concluded December thirty-one, 2007, can be $40, 500: ($400, 000/10).
3. These costs should be expensed because incurred. Therefore $275, 500 of organization expense is usually reported in income for 2007.
5. Because the permit can be quickly renewed (at nominal cost), it has an indefinite life. As a result, no demise will be documented. The certificate will be analyzed for impairment in future times.