Accouting 303 Project

2. As a for-profit entity, my company must present the amount of the donation as an expense at the plumbly apprise of the donated asset. In this case, my company must recognized a loss of cardinal gram dollars, simply beca function the ordinary value of my donated asset is two thousand dollars. Furthermore, I must update my books by debiting Contribution Expense and injury on governance of x asset for $2,000 and $8,000 crediting the asset for $10,000.In this case, the fair value of my asset was lower than its book value forcing me to recognize a loss on my contribution. FASB ASC 845-10-30-1In superior general, the accounting for nonmonetary transactions should be establish on the fair set of the assets (or services) involved, which is the same basis as that use in monetary transactions. Thus, the constitute of a nonmonetary asset acquired in alternate for an early(a) nonmonetary asset is the fair value of the asset surrendered to obtain it, and a gain or loss shall be r ecognized on the exchange.The fair value of the asset received shall be used to handbill the cost if it is more clearly evident than the fair value of the asset surrendered. Similarly, a nonmonetary asset received in a nonreciprocal remove shall be recorded at the fair value of the asset received. A commute of a nonmonetary asset to a nervous strainholder or to another entity in a nonreciprocal transfer shall be recorded at the fair value of the asset transferred and a gain or loss shall be recognized on the disposition of the asset.FASB ASC 845-10-30-2The fair value of an entitys own stock reacquired may be a more clearly evident measure of the fair value of the asset distributed in a nonreciprocal transfer if the transaction involves distribution of a nonmonetary asset to eliminate a disproportional part of owners interests (that is, to acquire stock for the treasury or for retirement).If one of the parties in a nonmonetary transaction could have elected to receive cash sort of of the nonmonetary asset, the amount of cash that could have been received may be state of the fair value of the nonmonetary assets exchanged. 1. In this case, the facility is a Qualifying asset an asset that takes a substantial period of succession to get determine for its intended use. Therefore, borrowing be that are directly colligate to the learning of this facility can be trespassd as part of the cost of the asset. On the other and, an choice is the Benchmark treatment, which expenses borrowing cost when incurred. I chose to capitalize the facility, because expenses should follow revenues, in accordance to the matching principle. My facility will not be productive until my long-term inquiry and victimization projects produce revenues. FASB ASC 730-10-25-2Elements of costs shall be identified with look for and knowledge activities as follows (see Subtopic 350-50 for guidance related to website ontogenesis) * a. Materials, equipment, and facilities.The costs of materials (whether from the entitys normal inventory or acquired specially for seek and tuition activities) and equipment or facilities that are acquired or constructed for research and ripening activities and that have alternative future uses (in research and development projects or otherwise) shall be capitalized as tactile assets when acquired or constructed. The cost of such materials consumed in research and development activities and the dispraise of such equipment or facilities used in those activities are research and development costs.However, the costs of materials, equipment, or facilities that are acquired or constructed for a particular research and development project and that have no alternative future uses (in other research and development projects or otherwise) and therefore no separate stinting values are research and development costs at the time the costs are incurred. See Topic 360 for guidance related to property, plant, and equipment the evil or Disposa l of Long-Lived Assets Subsections of Subtopic 360-10 for guidance related to impairment and disposal and paragraphs 360-10-35-2 through 35-6 for guidance related to depreciation. * b. Personnel. Salaries, wages, and other related costs of force out engaged in research and development activities shall be included in research and development costs. ? * c. Intangible assets purchased from others. The costs of intangible assets that are purchased from others for use in research and development activities and that have alternative future uses (in research and development projects or otherwise) shall be accounted for in accordance with Topic 350.The amortization of those intangible assets used in research and development activities is a research and development cost. However, the costs of intangibles that are purchased from others for a particular research and development project and that have no alternative future uses (in other research and development projects or otherwise) and there fore no separate economic values are research and development costs at the time the costs are incurred. ? * d. Contract services.The costs of services performed by others in confederation with the research and development activities of an entity, including research and development conducted by others in behalf of the entity, shall be included in research and development costs. ? * e. Indirect costs. Research and development costs shall include a reasonable allocation of indirect costs. However, general and administrative costs that are not clearly related to research and development activities shall not be included as research and development costs. ?