GAAP require that research and development costs to develop a new product be

a. capitalized in the patents account.
b. expensed in the period incurred.
c. capitalized in the research and development costs account.
d. amortized over the expected economic life of the new product.


b

Business

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A company issued 10%, 5-year bonds with a par value of $2,000,000, on January 1. Interest is to be paid semiannually each June 30 and December 31. The bonds were sold at $2,162,290 based on an annual market rate of 8%. The company uses the effective interest method of amortization.(1) Prepare an amortization table for the first two semiannual payment periods using the format shown below.SemiannualCashBond???InterestInterestInterestPremiumUnamortizedCarryingPeriodPaidExpenseAmortizationPremiumValue??????????????????(2) Prepare the journal entry to record the first semiannual interest payment.

What will be an ideal response?

Business

Providing ______ can reduce the tax burden on both the organization and the individual.

A. bonuses B. benefits C. merit pay D. commissions

Business

All of the following are downstream costs except:

A. packaging costs B. sales commissions C. advertising D. research and development

Business

Article 2 of the Uniform Commercial Code (UCC) applies to contracts covering ________

A) real property B) professional services C) employment D) the sale of goods

Business