題組內容

III. The following questions are related to Penny company.
1. During the year 2017, Penny Company incurred several expenditures. Explain whether the expenditures listed below should be recorded as an operating expense or as an intangible asset. If you view the expenditure as an intangible asset, briefly explain the accounting treatments in the subsequent years (including the number of years over which the asset should be amortized). (16%)

(d) Penny Company is spending considerable time and money in developing a different patent for another product. So far $3,000,000 has been spent this year on research. Penny Company is very confident they will obtain this patent in the next few years.