Kingship Inc

question 85

Multiple Choice

Kingship Inc. is developing a new process that it plans to sell. During 2019 and 2020, the company capitalized $ 1.1 million and $ 0.2 million respectively. An additional $ 0.3 million was spent in 2021. During 2021, it became apparent that, due to a lack of financial resources, the company would not be able to complete the project. The total amount of capitalized costs relating to this project at the end of 2021 is

• A) nil.
• B) $ 1.3 million.
• C) $ 1.0 million.
• D) $ 1.6 million.

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Definitions:

Enforceability

The ability of a legal document or agreement to be upheld or compelled by law in a court of justice.

Notice of Assignment

A formal notification given to all relevant parties that a specific task, role, or obligation has been assigned to another party.

Assignee

An individual, group, or legal entity to which rights or interests have been transferred by another, known as the assignor.

Assigned Rights

Assigned rights involve the transfer of rights or duties under a contract from one party to another, not transferring the entire contract but specific benefits.