ACC 304 All Assignments ACC 304 All Assignments | Page 196

13) The fair value of the copyright at December 31, 2015, is $3, 20,000.
Prepare journal entry ( if any) necessary to record the increase in fair
value.
14) During 2012, Robin Wright Tool Company purchased a building site
for its proposed research and development laboratory at a cost of
$60,000. Construction of the building was started in 2012. The building
was completed on December 31, 2013, at a cost of $320,000 and was
placed in service on January 2, 2014. The estimated useful life of the
building for depreciation purposes was 20 years. The straight-line
method of depreciation was to be employed, and there was no
estimated residual value. Management estimates that about 50% of the
projects of the research and development group will result in long-term
benefits ( i.e., at least 10 years ) to the corporation. The remaining
projects and the direct costs incurred in conjunction with the research
and development activities for 2014 appears below. Upon
recommendation of the research and development group, Robin
Wright Tool Company acquired a patent for manufacturing rights at a
cost of $88,000. The patent was acquired on April 1, 2013, and has an
economic life 10 years. If generally accepted accounting principles were
followed, how would the item above relating to research and
development activities be reported on the following financial
statements?
15) All of the following are key similarities between GAAP and IFRS
with respect to accounting for intangible assets except:
16) Research and development costs are:
17) Which of the following statements is correct?