Page 19 - Ebook Financial Accounting 3
P. 19
ANSWER
Q1.1
Intangible Assets Cost
1 Patent A RM55,000
2 Patent D RM67,000
3 Franchise Q RM365,000 (RM350 + RM15,000)
Q1.2
Total costs for research and development activities:
RM
Materials 100,000
Salaries and wages 140,000
Provision of overhead 70,000
Depreciation on property used for 60,000
research and development
TOTAL COST 370,000
Q1.3
The company needs to record the amortization for the software on 31 December 2018 at
value of RM70,000. The value is derived as follows:
Cost (800,000) – Accumulated amortization (20,000 + 40,000 + 40,000)
10 years
31 December 2018
Dr. Amortization expense RM70,000
Cr. Accumulated amortization/software RM70,000
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