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Sarah20
Feb 2, 2008, 12:05 PM
Hey there,
I was wondering if anyone could help me with the following questions. I would really appreciate your help :) .

Multiple choice:

A company obtained a patent for a drug it developed. The amount capitalized in asocciation with the drug patent will include:

a. Only the cost of developing the drug.
b. Only the cost of filing for a patent.
c. The cost of developing the drug and filing for a patent.
d. Neither the cost of developing the drug and filing for a patent.

I'm confused between b and c.

True/False:

1. It is assumed that all property,plant and equipment will be consumed over time.

2. an estimate of un-collectable accounts is generally based on the company's historical experience rather than on known un-collectable accounts.

3. non-current assests include all types of property, plant and equipment as well as intangible assets without non-current prepaid.

I think it is False, True and False. I would like to confirm it with someone though.

N0help4u
Feb 2, 2008, 12:11 PM
C is answer A and B combined

Sarah20
Feb 2, 2008, 12:13 PM
Thanks :D