Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please also explain the calculations. for example

Please also explain the calculations. For example which figure is used and why. ...

70.2K

Verified Solution

Question

Accounting

Please also explain the calculations. For example which figure is used and why.
image
B) The Financial year end for Ovena Pharmacy Limited is the 30th of September. On 1 January 2018 Oveno Pharmaceutical Limited (OPL) started research into the production of a new pharmaceutical drug and spent $20,000 per month upon until 31 December 2018. The company commenced the development stage of the project to produce the new pharmaceutical drug on 1 January 2019. Expenditure of $70,000 per month was incurred until the project was completed on 30 June 2019 , when the drug went into immediate production. The directors became confident of the project's success on 1 March 2019. The drug has an estimated life span of five years; time apportionment is used by OPL where applicable. REQUIRED: i. Calculate the amount OPL should charge to the Statement of Comprehensive Income for the years 2018 and 2019 as it relates to the above project. (6 marks) ii. Calculate the amount to be recorded on the Statement of Financial Position for the years 2018 and 2019. (4 marks) C) List and explain three conditions that must be fulfilled before a development expenditure can be capitalized. (6marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

No More Books Corporation has an agreement with Floyd Bank, whereby the bank handles $7 million...

Finance
Q

If a child has blood type AB, he or she could NOT have been produced by which...

Medical Sciences
Q

to reach your answer fraud Describe the method you used 4 Describe a way you...

Biology
Q

An infinitely long uniform charge distribution of charge per unit length lies parallel to the...

Physics
Q

Prove that the sum of any two even integers is even

Basic Math
Q

X 28 Mr Baddie is trying to shoot Mr Spy with a laser gun Mr...

Calculus
Q

The current 1 in amperes flowing through a AC alternatice current circuit at time t...

Calculus
Q

Pharoah Company uses the perpetual inventory system and had the following purchases and...

Accounting
Q

Magic Realm. Incorporated, has developed a new fantasy board game. The company sold 16,000 games...

Accounting
Q

Q4. Given the demand below: Q=APBB

Finance
Q

eBook Hampton Industries had $72,000 in cash at year-end 2020 and $10,000 in cash at...

Finance
Q

Required information Skip to question [The following information applies to the questions displayed below.] The...

Accounting