(c) In 2015, the company successfully defends the patent in extended
litigation at a cost of $47,200, thereby extending the patent life to
December 31, 2022.
(d) Additional engineering and consulting costs incurred in 2015
required to advance the design of a product to the manufacturing
stage total $60,000.
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ACCT 551 Week 2 Homework E13-11, E13-12, P13-9
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E13-11 (Warranties) Sheryl Crow Equipment Company sold 500
Rollomatics during 2014 at $6,000 each. During 2014, Crow spent
$20,000 servicing the 2-year warranties that accompany the
Rollomatic. All applicable transactions are on a cash basis.
E13-12 (Premium Entries) No Doubt Company includes 1 coupon in
each box of soap powder that it packs, and 10 coupons are
redeemable for a premium (a kitchen utensil). In 2014, No Doubt
Company purchased 8,800 premiums at 80 cents each and sold
110,000 boxes of soap powder at $3.30 per box; 44,000 coupons were