How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Bizhelp Your Own Question

Bizhelp, Accountant
Category: Business and Finance Homework
Satisfied Customers: 5884
Experience:  BA degree and Certified Public Accountant
Type Your Business and Finance Homework Question Here...
Bizhelp is online now
A new question is answered every 9 seconds

Margaret Avery Company from time to time embarks on a research program

This answer was rated:

Margaret Avery Company from time to time embarks on a research
program when a special project seems to offer possibilities. In 2009 the company expends $325,000 on a research
project, but by the end of 2009 it is impossible to determine whether any benefit will be derived from it.
(a) What account should be charged for the $325,000, and how should it be shown in the financial
(b) The project is completed in 2010, and a successful patent is obtained. The R&D costs to complete
the project are $130,000. The administrative and legal expenses incurred in obtaining patent number (NNN) NNN-NNNN84 in 2010 total $24,000. The patent has an expected useful life of 5 years. Record
these costs in journal entry form. Also, record patent amortization (full year) in 2010.
(c) In 2011, the company successfully defends the patent in extended litigation at a cost of $47,200,
thereby extending the patent life to December 31, 2018. What is the proper way to account for this
cost? Also, record patent amortization (full year) in 2011.
(d) Additional engineering and consulting costs incurred in 2011 required to advance the design of a
product to the manufacturing stage total $60,000. These costs enhance the design of the product
considerably. Discuss the proper accounting treatment for this cost.

Thanks for the question.

Please click here for the solution.

Hope this helps!
Bizhelp and other Business and Finance Homework Specialists are ready to help you