Given below are costs incurred by Bunker Company during 2017 and 2018.Bunker follows the policy of decreasing the Intangible Asset account directly as amortized.
Research was conducted to discover a new product and costs of $200,000 in 2017 and $80,000 in 2018 were incurred.After several months,a product was created and a patent secured for a cost of $150,000,effective as of July 1,2018.The company expects to have increased revenues of $500,000 over the next several years.The patent is expected to be useful for the next ten years.
A. Prepare a partial income statement for the year ended December $ 31,2018 $.

B. How should the $ \$ 80,000 $ cost incurred in 2018 be reported on the financial statements?

Question

Given below are costs incurred by Bunker Company during 2017 and 2018.Bunker follows the policy of decreasing the Intangible Asset account directly as amortized.
Research was conducted to discover a new product and costs of $200,000 in 2017 and $80,000 in 2018 were incurred.After several months,a product was created and a patent secured for a cost of $150,000,effective as of July 1,2018.The company expects to have increased revenues of $500,000 over the next several years.The patent is expected to be useful for the next ten years.
 A. Prepare a partial income statement for the year ended December $ 31,2018 $.

B. How should the $ \$ 80,000 $ cost incurred in 2018 be reported on the financial statements?

Quizplus · Accepted Answer

The Answer of Given below are costs incurred by Bunker Company during 2017 and 2018.Bunker follows the policy of decreasing the Intangible Asset account directly as amortized.
Research was conducted to discover a new product and costs of $200,000 in 2017 and $80,000 in 2018 were incurred.After several months,a product was created and a patent secured for a cost of $150,000,effective as of July 1,2018.The company expects to have increased revenues of $500,000 over the next several years.The patent is expected to be useful for the next ten years.
 A. Prepare a partial income statement for the year ended December $ 31,2018 $.

B. How should the $ \$ 80,000 $ cost incurred in 2018 be reported on the financial statements?

Given Below Are Costs Incurred by Bunker Company During 2017 31,2018 31,2018 31,2018

Given Below Are Costs Incurred by Bunker Company During 2017 $31,2018$