Reichenbach Co. organized in 2009, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2009 and 2010. 7/1/09 8 year franchise; expiration date 6/30/17 48,000 10/01/09 Advance payment in laboratory space(2 year lease) 24,000 12/31/09 Net Loss for 2009 including statement incorporation fee, 1000, and related
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Notes to Consolidated Financial Statements Note 1 Summary of Significant Accounting Policies Nature of Operations Wireless Cookies, Etc is a company that manufactures and distributes various types of baked goods to wholesale retailors and individuals via the internet. The products are available to everyone who has internet connection and is interested in selling our product in their store. The product is available in the USA, several European countries, several Caribbean countries. The cost
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1. (TCO C) The total amount of patent cost amortized to date is usually: shown in a separate Accumulated Patent Amortization account, which is shown contra to the Patent account. shown in the current income statement. X reflected as credits in the Patent account. reflected as a contra property, plant, and equipment item. 2. (TCO C) When developing computer software to be sold, which of the following costs should be capitalized? Designing
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Carrie Williams AC551 November 10, 2011 Velocity Cellular Case Study Velocity Cellular Case 1. Velocity should treat the “Power Starter pack” prepaid phone plan as a multiple-element arrangement. 2. Velocity should allocate the revenue of $200 between the activation card and the prepaid voucher. 3. A. Velocity should recognize revenue from the activation card and the prepaid voucher. B. Velocity should recognize revenue from the prepaid voucher as the minutes
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Carrie Williams AC551 November 10, 2011 Velocity Cellular Case Study Velocity Cellular Case 1. Velocity should treat the “Power Starter pack” prepaid phone plan as a multiple-element arrangement. 2. Velocity should allocate the revenue of $200 between the activation card and the prepaid voucher. 3. A. Velocity should recognize revenue from the activation card and the prepaid voucher. B. Velocity should recognize revenue from the prepaid voucher as the minutes
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Keller Graduate School of Management AC551 Federal Taxes and Decisions Final Exam – Professor Abner TRUE-FALSE QUESTIONS—CHAPTER 10 1. Terry Trumbull purchased a tract of land. In order to have city water, he had to pay the water company $5,000 to extend the water line to his property. The $5,000 cost is an addition to the basis of the land. TRUE 2. When property that is subject to an existing debt is purchased, the basis of the property is the amount of cash paid initially plus the unpaid
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