ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 19

18) MaBelle Corporation incurred the following costs in 2015:

Acquisition of R&D equipment with a useful life of 4 years in
R&D projects
$800,000

Start-up costs incurred when opening a new plant

140,000

Advertising expense to introduce a new product

700,000

Engineering costs incurred to advance a product to full
production stage 500,000

What amount should MaBelle record as research & development
expense in 2015?

19) Jenks Corporation acquired Linebrink Products on January
1, 2015 for $8,000,000, and recorded goodwill of $1,500,000 as
a result of that purchase. At December 31, 2015, Linebrink
Products had a fair value of $6,800,000. The net identifiable
assets of the Linebrink (excluding goodwill) had a fair value of