Chapter 20 Problem 20-46 to 50
Problem 20-46 Answer C
Depreciation of equipment 135,000
Materials used 200,000
Compensation costs of personnel 500,000 Outside consulting fees 150,000 Indirect costs allocated 250,000 1,235,000
Problem 20-47 Answer A
Modification to the formulation of a chemical product 135,000
Design of tools, jigs, molds and dies 170,000
Laboratory research 215,000
Total research and development expense 520,000
Problem 20-48 Answer D
All costs are charged to R and D expense.
Problem 20-49 Answer A
Trademark 3,000,000
Value in use (120,000 / 6%) 2,000,000
Impairment loss 1,000,000
Patent 2,000,000
Amortization for 2008 (2,000,000 / 5) 400,000
Book value – 12/31/2008 1,600,000
Value in use (500,000 x 3.47) 1,735,000
Impairment loss -_ _
Problem 20-50 Answer B
Carrying amount of net assets 16,000,000
Value in use (8,000,000 x 1.5) 12,000,000
Impairment loss – applicable to goodwill 4,000,000
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