This Question Has 2 Parts (1)

THIS QUESTION has 2 parts:6. A company incurs research and development costs of $200,000 in 2011 of which $50,000 of these costs relate to development activities because certain criteria have been met which suggest that an intangible asset has been created. 6.1 What amount should be recognized as research and development expense in 2011 using U.S. GAAP? a)$50,000.b)$150,000.c)$200,000.d)$0.e)$250,000.6.2 What amount should be recognized as research and development expense in 2011 using IFRS? a)$50,000.b)$150,000.c)$200,000.d)$0.e)$250,000.This QUESTION has 4 Parts:7. The following information pertains to inventory held by a company at December 31, 2011:Historical Cost =$25,000Replacement Cost =$20,000Net Realizable Value =$21,000Normal Profit Margin =20%7.1 What amount of inventory should be reported under U.S. GAAP?a)$25,000.b)$21,000.c)$20,000.d)$16,800.e)$16,000.7.2 What is the amount of inventory loss shown on the income statement under U.S. GAAP?a) $1,000.b) $2,000.c) $4,000.d) $5,000.e) $8,200.7.3 What amount of inventory should be reported under IFRS?a) $25,000b) $21,000c) $20,000d) $4,000e) $5,0007.4 What is the amount of inventory loss shown on the income statement under IFRS?a) $1,000.b) $2,000.c) $4,000.d) $5,000.e) $6,000.

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