Question 17
On December 31 , 2005 , Bit Co . had capitalized costs for a new computer software product with an economic life of five years . Sales for 2006 were 30 percent of expected total sales of the software . At December 31 , 2006 , the software had a net realizable value equal to 90 percent of the capitalized cost . What percentage of the original capitalized cost should be reported as the net amount on Bit ' s December 31 , 2006 balance sheet ?
Question 18
On January 1 , 2001 , Babson , Inc . leased two automobiles for executive use . The lease requires Babson to make five annual payments of $ 13,000 beginning January 1 , 2001 . At the end of the lease term , December 31 , 2005 , Babson guarantees the residual value of the automobiles will total $ 10,000 . The lease qualifies as a capital lease . The interest rate implicit in the lease is 9 %. Present value factors for the 9 % rate implicit in the lease are as follows : Babson ' s recorded capital lease liability immediately after the first required payment should be
Question 19
YIV Inc . is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers . YIV should report segment financial information for each division meeting which of the following criteria ?
Question 20
Brill Co . made the following expenditures during 2004 : What amount of these expenditures should Brill report in its 2004 income statement as research and development expenses ?
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