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Cengage xyCengageNowy21 Online C secure l https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssig tor=assignment-take&inprogress Chapter 12 Exercises eBook Calculator Research and Development Costs Cressman Company incurred R&D costs for various projects in 2016 as follows: Materials used for research Materials used for development Equipment acquired that will have alternative uses in future 1. Ex.12-03 Algo 2. Ex. 12-02.Algo 3. Ex. 12-04 Algo 4. Ex. 12-05 5. Ex.12-08 Algo 6. Ex. 12-10 7. Ex. 12-14.Algo 8. Ex. 12-15 9. Ex. 12-18 Algo 10. Ex. 12-19.Algo 11. Ex. 12-20.Algo $ 230,000 160,000 research projects for 4 years Personnel costs of employees involved in research Personnel costs of employees involved in development Consulting fees paid to outsiders for research Consulting fees paid to outsiders for development Indirect costs reasonably allocable for research Indirect costs reasonably allocable for development Required 1. What is the amount of Cressman's R&D expenses for 2016 if it uses U.S. GAAP? 1,840,000 600,000 300,000 20,000 75,000 150,000 70,000 CRESSMAN COMPANY 2016 Expense Calculations U.S. GAAP Materials used in R&D projects Depreciation on equipment (straight-line) Personnel costs Consulting fees Indirect costs 2. How would your answer change if Cressman uses IFRS? Assume that the company can demonstrate that the projects are expected to generate future economic benefits. Check My Work Previous Next Progress: 5/11 items Assignment Score: 47.81% All work saved. Email Instrctor Save and Exit Submit Assignment for Grading O Type here to search 2:26 PM 9/9/2018

Explanation / Answer

1) Amount of Cressman's R&D Expenses for 2016 if it uses U.S GAAP Particulars Amount Material used in R & D $                                3,90,000.00 Depreciation on equipment $                                4,60,000.00 personal cost $                                9,00,000.00 consulting fees $                                    95,000.00 indirect cost $                                2,20,000.00 total cost of R& D $                              20,65,000.00 cressman company 2016 expenses calculation IFRS Particulars Amount Material used in research $                                2,30,000.00 Depreciation on equipment $                                4,60,000.00 personal cost $                                6,00,000.00 consulting fees $                                    20,000.00 indirect cost $                                1,50,000.00 total cost of R& D $                              14,60,000.00 Material used in development project $                                1,60,000.00 personal costs $                                3,00,000.00 consulting cost $                                    75,000.00 indirect costs $                                    70,000.00 total cost of R& D $                                6,05,000.00

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