On january 1, 2013, the highlands company began construction on a new


Don't use plagiarized sources. Get Your Custom Essay on
On january 1, 2013, the highlands company began construction on a new
Just from $13/Page
Order Essay

1)On January 1, 2013, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2014. The company borrowed $1,500,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2013:
$5,000,000, 12% bonds
$3, 000, 000, 8% long-term note
Construction expenditures incurred during 2013 were as follows:
January 1 $600,000
March 31 $1, 200, 000
June 30 $800,000
September 30 $600,000
December 31 $400,000
Calculate the amount of interest capitalized for 2013 using the specific interest method
2)In 2013, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:
Basic Research to develop the technology: $2,000,000
Engineering design work: 680,000
Development of prototype device: 300,000
Acquisition of equipment: 60,000
Legal and other fees for patent application on the new communication system: 40,000
Legal fees for successful defense of the new patent: 20,000
Total: 3,300,000
The equipment will be used on this and other research projects. Depreciation on the equipment for 2013 is $10,000.

During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
Required: Prepare correcting entries that reflect the appropriate treatment of the expenditures.
3) Delaware Company incurred the following research and development costs during 2013:
Salaries and wages for lab research: $400,000
Materials used in R&D projects: 200,000
Purchase of equipment: 900,000
Fees paid to outsiders for R&D projects: 320,000
Patent filing and legal costs for a developed product: 65,000
Salaries, wages and supplies for R&D work performed for another company under a contract: 350,000
Total: 2,235,000
The equipment has a seven-year life and will be used for a number of research projects. Depreciation for 2013 is $120,000.

Required: Calculate the amount of research and development expense that Delaware should report in its 2013 income statement.


Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

At 111papers.com, we value all our customers, and for that, always strive to ensure that we deliver the best top-quality content that we can. All the processes, from writing, formatting, editing, and submission is 100% original and detail-oriented. With us, you are, therefore, always guaranteed quality work by certified and experienced writing professionals. We take pride in the university homework help services that we provide our customers.

Money-Back Guarantee

As the best homework help service in the world, 111 Papers ensures that all customers are completely satisfied with the finished product before disbursing payment. You are not obligated to pay for the final product if you aren’t 100% satisfied with the paper. We also provide a money-back guarantee if you don’t feel that your paper was written to your satisfaction. This guarantee is totally transparent and follows all the terms and conditions set by the company.

Read more

Zero-Plagiarism Guarantee

All products that we deliver are guaranteed to be 100% original. We check for unoriginality on all orders delivered by our writers using the most advanced anti-plagiarism programs in the market. We, therefore, guarantee that all products that we submit to you are 100% original. We have a zero-tolerance policy for copied content. Thanks to our strict no plagiarized work rule, you can submit your homework to your professor without worrying.

Read more

Free-Revision Policy

TThis is one of the most cherished courtesy services that we provide to help ensure that our customers are completely satisfied with our finished products. Delivering the best final product to our customers takes multiple inputs. 111papers.com prides itself on delivering the best university homework help services in the writing industry. And, in part, our free revision policy is how we do it. What’s more, all our revisions are 100% free without any strings attached.

Read more

Privacy Policy

Client privacy is important to use. We know and understand just how important customers value their privacy and always want to safeguard their personal information. Thus, all the information that you share with us will always remain in safe custody. We will never disclose your personal information to any third party or sell your details to anyone. 111 Papers uses the most sophisticated, top-of-the-line security programs to ensure that our customers’ information is safe and secured.

Read more

Fair-Cooperation Guarantee

Placing your order with us means that you agree with the homework help service we provide. We, in turn, will endear to ensure that we do everything we can to deliver the most comprehensive finished product as per your requirements. We will also count on your cooperation to help us deliver on this mandate. Yes, we also need you to ensure that you have the highest-quality paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages