PharmY, Inc., is a U. S. GAAP reporter that is in the pharmaceutical industry. In the current year, PharmY incurred expenditures related to laboratory experiments designed to discover a new drug. The expenditures were as follows: Laboratory equipment that will be used for this project only $1,000,000
Materials that will be used for this project only 750,000
Wages for employees involved exclusively in the project 500,000
Search the Codification to determine how to record each type of cost. Write a memo to the file to commu- nicate your results

Answer with Explanation:

Tangible assets fall under the scope of International Accounting Standard IAS-36 Property, Plant and Equipment which says that assets that qualify following conditions, must be capitalized:

Now here, the life expectancy of laboratory equipment is unknown and also that we don't know if the asset can be resold in the market or not. This means, if the asset has life expectancy is no more than a year and that the future benefits will flow towards the company then it must be capitalized otherwise it must be expensed out as per the guidelines of International Accounting Standard IAS-38 Intangible Assets, which says that the research cost prior to the development expenditure must be expensed out.

The other two costs are revenue expenditure and must be expensed out under the name research and development cost as per the guidelines of IAS-38.

answer; /// i believe the correct answer to the above question is(200 pounds); /good luck

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.