Glass 4 Windows Is Involved in a Research and Development

question 18

Multiple Choice

Glass 4 Windows is involved in a research and development project to create a filtering window that removes the need for curtains. For the current year ended 30 June 2004 expenditure on the project is as follows:

The window is expected to earn revenues of $70,000 per year for the 10 years commencing 1 July 2004. Assuming straight-line amortisation, how much of the research and development cost should be expensed this period and what amount should be amortised in the year ended 30 June 2007?

• A) Expensed in 2004: $58,500 Amortisation in 2007: $58,500
• B) Expensed in 2004: $235,000 Amortisation in 2007: $35,000
• C) Expensed in 2004: $235,000 Amortisation in 2007: $28,000
• D) Expensed in 2004: $350,000 Amortisation in 2007: $23,500
• E) None of the given answers.

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Definitions:

High-context Cultures

Cultures in which communication relies heavily on implicit elements such as the context of the conversation and non-verbal cues.

Explicitly Spelled

Refers to something being stated or written in a clear and detailed manner, leaving no room for confusion or ambiguity.

Eye Contact

The act of looking directly into another person's eyes, which can communicate confidence, attention, and engagement in interpersonal interactions.

Universal Sign

A symbol or gesture that is widely recognized and understood across different cultures or contexts.