On January 1 2013 Sugar Corporation signed a ten year lease for an office space

On january 1 2013 sugar corporation signed a ten year

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10.On January 1, 2013, Sugar Corporation signed a ten-year lease for an office space. Sugar has the option to renew the lease for an additional five-year period on or before December 31, 2017. Sugar finished the con-struction of general improvements to the leased premises at costing of P2,100,000 on January 1, 2016 with a useful life of 10 years and opted to depreciate these leasehold improvements using the straight-line method. At December 31, 2016, Sugar’s intention as to exercise the renewal option is uncertain. Sugar took a full year’s depreciation in 2016. In 2017, it was decided by management to exercise the renewal option stated in the contract. What is the depreciation expense on the leasehold improvement in 2017? a. 300,000 c. 150,000 b. 200,000 d. 210,000
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PAGE 19Research and Development Expense Cost incurred during product development and charged as expensed as incurred. Product development only relates to new products and services being created by the entity. This does not include the routine improvements and modification to existing products. Due to the uncertainty of such experimental activities all cost shall be charged to expense unless PPE or IA are acquired with an alternative future use. In such case the cost shall be capitalized and only the depreciation or amortization is charged to R and D expense. Once technological feasibility is achieved, cost is now capitalized as intangible asset such as formulamodelor prototypesAlso, contractually reimbursable research and development cost is treated as a receivable. , . 11. Summer Company incurred research and development costs in 2017 as follows: Equipment acquired for use for various research and development projects 6,000,000 Depreciation on the above equipment 1,200,000 Materials used 3,000,000 Compensation costs of personnel 4,000,000 Outside consulting fees 1,500,000 Indirect costs appropriately allocated 1,300,000 What is the 2017 total research and development expense? 12. Humble Company incurred the following costs during 2017: Quality control during commercial production, including routine testing of products 500,000 Laboratory research aimed at discovery of new knowledge 700,000 Testing for evaluation of new products 300,000 Engineering follow-through in an early phase commercial production 1,000,000 Adaptation of an existing capability to a particular requirement or customer’s need as part of continuing commercial activity200,000 Trouble-shooting in connection with breakdowns during commercial production 800,000 Searching for application of new research findings 450,000 What was Humble Company’s research anddevelopment expense for 2017?
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