0 Required information [The following information applies to the questions displayed below.] Janson Pharmaceuticals incurred the following costs in 2024 related to a new cancer drug: $ 2,465,000 1,640,000 64,000 $4,169,000 Research for new formulas Development of a new formula Legal and filing fees for a patent for the new formula Total The development costs were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new drug was patented before the end of the 2024 fiscal year. 2. Calculate the amount of research and development expense Janson should report in its 2024 income statement related to this project. Assume that Janson prepares its financial statements according to International Financial Reporting Standards. Research and development expense

0 Required information [The following information applies to the questions displayed below.] Janson Pharmaceuticals incurred the following costs in 2024 related to a new cancer drug: $ 2,465,000 1,640,000 64,000 $4,169,000 Research for new formulas Development of a new formula Legal and filing fees for a patent for the new formula Total The development costs were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new drug was patented before the end of the 2024 fiscal year. 2. Calculate the amount of research and development expense Janson should report in its 2024 income statement related to this project. Assume that Janson prepares its financial statements according to International Financial Reporting Standards. Research and development expense

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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The following costs are incurred by Everlasting Corporation in 2022: a. Cost of activities aiming new knowledge P150,000 b. Cost of developing and producing prototype model 30,000 c. Cost of seminars to introduce the newly develop product 120,000 d. Advertisement cost to introduce the newly develop product 60,000 e. Cost incurred for search of alternatives 35,000 f. Cost of final selection of possible alternatives 50,000 g. Cost of machine acquired to be used only in an R&D project 300,000 h. Cost of engineering follow through in an early phase of commercial production 50,000 i. Adaptation of an existing capability to particular customers need 36,000 j. Salaries of employees involved in R&D 480,000 k. Radical modification to the formulation of a chemical product 40,000 l. Laboratory…
In 2021, Edwards Corporation incurred research and development costs as follows: Materials and equipment P105,000 Personnel 120,000 Indirect costs 150,000 P375,000 These costs relate to a product that will be marketed in 2022. It is estimated that these costs will be recouped by December 31, 2023, but its process has not achieved economic viability. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2021? a. PO. b. P225,000. c. P270,000. d. P375,000.
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