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Research and development activities may include (a)

Intermediate Accounting | 15th Edition | ISBN: 9781118147290 | Authors: Donald E. Kieso ISBN: 9781118147290 164

Solution for problem 20 Chapter 12

Intermediate Accounting | 15th Edition

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Intermediate Accounting | 15th Edition | ISBN: 9781118147290 | Authors: Donald E. Kieso

Intermediate Accounting | 15th Edition

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Problem 20

Research and development activities may include (a) personnel costs, (b) materials and equipment costs, and (c) indirect costs. What is the recommended accounting treatment for these three types of R&D costs?

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Sudan,Ethiopiaand Somalia Sudan: BritainlookedatSudanaspart of theSuezstrategicregionandRedSeastrategicregion.Theysawit as partof Egypt,neverasits owncolony.Itwas controlledfromCairo,muchlikeSomalilandwascontrolled fromAden. ThecapitalofmodernSudanisKhartoum,wheretheBlueandWhiteNilescometogether. TheWorldWars: DuringWWI,Egyptwas sickof Britainandwantedfreedom,butthenWWIIcame.FromWWI on,Sudan wasjusta part of Egypt,and theywerecontrolledasone.In1952, afterWWII,Egypt was goingthrough significantchanges,andthewidertrendofnationalismthatsweptAfricaafterWWIIhadtakenroot thereaswell. WWIIawakenednationalismainthecolonies,becauseitwasawarofideology,withfascismtryingto destroywesternideasoffreedom.Afterbeatingthefascists,westernEuropetriedtorevitalisetheir valuesoffreedom,andthisledtoideasthatpeopleshouldrulethemselves.Fascismisverysimilarto colonialism,andtheyhadjustfoughtfascism.AnothermajorcontributionwastheformingoftheUN, whichwasjoinedbyLatinAmericawhichwasalreadyfreeandAsiancountriesthatwerebecoming decolonised.Finally,thewarhaddestroyedthemajorcolonialpowers,theylostalotofresourcesand losttheireconomicpower. Thetwonewsuperpowerswerenotcolonialpowers.Alsosignificantwastheemergenceofthe nationalisteliteinthecolonies.Thefirstelitehadbeenthechildrenoftraditionalleaderswhowere moreinterestedinreformingcolonialismtobetreatedequally,butwerenotintunewiththemasses. ThepeoplewhohadfoughtinEuropesawthefightingandpovertythere,andtheywantedoutofthe brutalcolonialregimes.Allthesepeoplewerethecommonersandsawwhatwashappeningintherest oftheworld,andwantedout. Sudanand Egypt inthe 1950s: InEgyptin 1952, 3 movementsconfrontedEgyptianindependence.Onemovement:Egypthaditsown monarchy,butitwas verycorruptand elitist.TheBritishputtheminplaceandrespectedthem.A secondmovement,mostlyintheSudan,wastheMuslimBrotherhood.Theywereareligiousmovement thatidealisedtheircultureandsawanychangeas a threatto Egyptianculture.Thethirdelementwas themilitary.YoungofficerstrainedinBritainwantedtodevelopEgypt,makeitmorelikeRussiaandthe US. Nasser(sometimesspelledNasir)emergedastheleaderofEgypt,andhewantedtoindustrialiseitso thatitcouldproduceitsown things.Hewas sickofjust makingcottonforEurope.He wasveryradical in whathewantedtodo,and foughtagainsttheMB a lot. Hetriedto influenceSudan,sayingiftheygot ridoftheBritishtheycouldbeindependent.Hewastryingtosuggestself-governanceforthem,andit wasfirstmadeitsowncolonyandthen becameeffectivelyindependentaround1956. Sudanhadtwobasicreligiousmovementsthatwerecommon.OnewasaMahdistmovementcalled Ansar.Itwas a productof earlierresistancetocolonialruleintheSudan,withareligiousleader organisingresistanceagainsttheBritishandEgyptians.HecreatedaMahdistatethere.That movement haditsownsuccessors,theAnsarmovement,ledbyhisson.TheBritishcreatedanothermovement calledKhatimiyyatocounterthenationalismatthatperiod.Intheend,politicalpartieswereintroduced by1956. Generally,afterWWII,Europeansbuiltthemodelofdemocracyintheircolonies.TheBritishstartedto createaparliamentandconstitutionandelections.TheMahdistmovementcreatedamajorpolitical partycalledtheUmmaparty. Themodelsthatwerebeingmadeweren'tgoingtowork,because democracyneedsanestablishedbackground.Upuntilthe1950s theyweren'tinterestedinthat,they werealldictatorialstateswithnooneallowedtoexpressthemselves.Allofasudden,afterthefallof fascism,westernEuropetriedtomakethecoloniesmorelikethem.Thesemodelsweredestinedtofail. Thisisstillthecase,aswesaw withtheArab SpringinplaceslikeLibyaandTunisia.Fromthe1960s, colonialpowersgaveindependenceintheformofdemocraticmodels. IttookBritain150 yearsto makea democraticsystem.Toevengetclose,theyneededanindustrialclass andstructures.Theytriedtoimposeitsuddenlyfrom1950and on inthecolonies,andtheconditions werenotright.TheyforcedtheMahdistreligiousmovementtobecomeaparty.Therewasalsoa NationalUnionistParty,whichwasrunbytheKhatimiyya.TheyhadtoexistwithintheBritish constitutionandthesetwocompetedinelections.TheUmmagroup,theMahdists,wereveryanti- Egyptian.TheUnionists,however,werepro-Egyptian. EgyptclaimedtheSudan,andNasserwantedSudantobeintegratedintoEgypt.Sudanbecameamajor forceafterindependencein1956. TheBritishweremoreinterestedinNorthernSudanafterthis. RegionalconflictinSudan: Sudanisdividedintotworegions,northandsouth.NorthernSudanhasathousandyearhistoryofArabs cominginandtradingand integrating,ahistoryofIslamisationandArabisation.TheyareMuslimand speakArabic.Duringthecolonialperiod,thisregionwascontrolledandruledseparatelyfromthesouth. SouthSudanisChristian,andhasitsown variousNiloticorAzandelanguages. TheBritishdidnotallow ChristianmissionariestogototheNorth,onlythesouth.The SouthbecameChristianandsortofEnglish speaking.IntheNorth,it'sArabicwithalittleEnglish.TheBritishallowedtraditionalreligiousleadersto ruleNorthernSudan,aspartof theirsystemofindirectrule.Themosteffective,efficientandcheapway torulepeopleistoletthemrulethemselvesandhavetheirrulersworkforyou.Thetraditionalleader wasloyaltothenewpower,notto thepeople. IntheSouth,theBritishalsousedindirectrulethroughtraditionalleaders,butnotIslamicrule.They triedtoputthetwo regionstogetherin1956, and themore organisedNorthwoundupruling.AsSudan becameindependent,thesouthernoneshadnosayinanything.TheNorthernerswereamajorfactorin controllingtheSouth.Therewerevaguepromisesaboutcreatingasinglestate,doingsomethingabout thedivide,buttheconstitutionjustsaidSudanwasanIslamicstate,buttheSouthwasChristian. In1962, the firstcivilwaremerged.Colonialismcreatedtwosocietieswithtwotraditions,andputthem togetherandgaveoneofthemallthepower.Thiswasalwaysgoingto happen.Aseparatistmovement inSouthSudancalledAnyanyaemerged,andwantedtomaketheirownstateandleavetheNorth,who didnothingforthem.TheyunderstoodthattheBritishhadleftthemfordead,prettymuch.Insteadof addressingtheSouthernproblem,thenorthernleadershadjusttakenoverandfeudedbetweenthe Ummasand NationalUnionists. FirstMilitaryCoup: Therewasa militarycoupin1958, aftertheUmma party withdrewformthecoalitiongovernment they'dformedwiththeNationalUnionistsin1956.This oftenhappenedafterindependenceinAfrica. Ghanabecameindependentin1957,and in 1960 therewasa militarycoup.Thesenewgovernments werecivilians,butthemilitaryawesthemostorganisedclassbuiltbycolonialism. ColonialismgavetwoimportantcontributionstoAfrica.Onewasinfrastructure,madetoextract resourcesratherthantodevelopthesociety.Theotherwasthemilitary.Whentheywerecolonising Africa,theywouldrecruitsoldiersfromtheirAfricancoloniesandusethemtocoloniseacrossthe continent.Theyalsousedthemintheirownwar,with1millioninWWIand2 millioninWWII.The militaryclasswasverystrong,anda productof colonialism.Duringtheprocessofindependence,they werenotconsideredtobepartofthesystem,sincetheyweremakingciviliangovernments.Whenever thecivilianleaderswouldfail,themilitarywouldcomeinandpeoplesupportedthat.Mostnations becameindependentinthe1960s,and by 1970 mostof themweremilitarystates.Civiliangovernment hadjustfailed. In1958, the militaryleaderGeneralIbrahimAboudtookoverSudan.Ingeneral,thesemilitaryleaders wereorganisedanddisciplined,brutcorruptanduneducated.Themilitarybuiltsingle-partystates,and becamedictatorial,ofteninsimilarwaystotheEasternEuropeans.Theywouldclaimsocialismor Marxism.Thiswasthefirstcoupin Africa.Aboudwasnotradical,however,hewasconservative.Most Arableaderswantedtochangetheirsocieties,buthedidnot.Also,heneveraddressedtheissueofthe south.Hemadeseveralmistakesthatledtounrest. Whenthesouthstartedtocreatetheirown movement,hestartedclosingmissionaryschoolsinthe south,inanattemptto Islamisethem.Heattackedtheireducatedelite,tryingtoArabiseandIslamise thesouth,whichmadethemovementsevenmoreaggressive. Hecalledfora round-tableconferencetoresolvetheissues,butthatdidn'tworkout.Hismilitaryrule failedfortworeasons.First,hewashavingissueswithreligiousgroups,andsecondlyhedidnothing aboutthesouth.In1969 therewasanothercoup whichhada majorimpact.Young officerstookover, similartomanyothercoups.Theheadof thisrevolutionwasNimeiri.In1969therewerethreemajor revolutionsinAfrica.OnewasinSomalia,whichlasteduntilthedisintegrationoftheSomalistate. AnotherwasGaddafiofLibya,andthethirdwas thisone. Duringthisperiod,nationalistsexpectedthingstochange,peoplewouldbefreeandwouldgetjobsand woulddevelop.Leadersmadealotofpromises,butcouldn'tgothroughwithitso themilitarytookover. Peoplecelebratedthisbecauseitwasseenasapathto order. SudanunderNimeiri: SoNimeiritookoverSudanin1969. He was radical,withslogansofcreatingliberaldemocracy.He createdtheRevolutionaryCommandCouncil,lookingforextensivecontroloftheeconomy.Inthe 1970s, he triedtocontrolallthe religiousmovementsandjailedtheirleaders,gettingridofthe conservativeelements.Sudanalsohadamajorcommunistparty.Thereweretwotrendswhenhetook power:thetraditionalistgroups,andtheleftists,suchasthecommunistpartyandthetradeunions.He gotridof bothof theseandstartedto buildhisownpersonalrule. In1971, he launchedamajorattack on the Communistelements,consolidatingpowerforhimself.The Communistsinthelate1970s gotrid of himand brieflytookover,buthecamebackand tookpower again.Hecameout to negotiatewiththesouthaftergettingridofhisenemies,in1972.Hecalledfora conferencetobeheldinAddisAbaba,calledtheAddisAbabaAgreementof1972.In thisagreement, Nimeiriandthesouthagreedthatthesouthwouldhaveinternalautonomy,beingpartofSudanbut electingtheirowngovernmentandrulingthemselves.Hecreatedapartyforthem,theSudanSocialist UnionParty. HewantedtomakeSudaninto"thebread basketoftheArab world"usingthesouth,arichlyagricultural area.Healsobuilta majorcanal thereto providewatertothenorthand to Egypt. Hehad hisown intentionsinthenegotiations,ofcourse.Eventhough70%ofthepopulationwasinthenorth,the richestagriculturalareasandtheoilwereintheSouth.Theoilhadjustbeendiscoveredatthetimeof theagreementandAmericanoilcompanies,specificallyChevron,alsowantedtoexploitit. Threethingswereaddressedatthenegotiations.SouthernSudanwouldhaveitsowninternal autonomy,andwouldbepartyoftheSocialistSudanParty.Inthelater1970s, Nimeiriwasnotfavoured bytheNorth,sincehe'djailedmostoftheirleaders.Hetriedtomakeamajorconferenceofnational reconciliation.Hetriedtoaccommodatetheseleaders. The1980s: TheMuslimBrotherhood(MB)isveryimportanttothehistoryofSudan.Hassan al-Turabiwastheleader oftheparty,a veryreligiousfundamentalist.HewasalsopartoftheUmma party. In1983, the AddisAbabaAgreementwiththesouthhadbeenmanipulatedbyNimeiri,whotriedto restructureitandputhispeopleinpower.Anewmovementemerged,calledtheSudanPeople's LiberationArmy,orSPLA,headedbyJohnGarang.Theywantedtosecede,becausetheiroilwasbeing takenbyChevron,andtheywereunderthecontrolofthenorth.Theybegancarryingout attacks. By1985, Nimeiriwasremovedfrompower,andpowershiftedtoamoreradicalgroup.TheMB would eventuallytakeover.Hislastingimpactwashisuseofforcetocontrolthenation,andhisjailingof opposingleadersuntilthereconciliation.Hewasunabletoresolvetheissueofthesouth.He accommodatedtheMBin thereconciliationandtheybecameverypowerful. Justbeforehelostpower,theMBforcedNimieritointroduceSharialaws.Thecountrywasn't exclusivelyIslamic,buttheMBwantedtoinstitutethisreligiousformoflawintotheconstitution, forcingtheSouthintoit.FortheMB, thereligiousleaderismoreimportantthanthestateleader.The SPLAbecamea much moreradicalmovement,andtheycalledforanotherconferencein1988.By 1989, anewmilitarygrouptookover,underBashir,thecurrentpresident,muchmoreMB-oriented.TheSPLA didn'treallywanttosecede,butbecauseoftheinstitutionofSharialawsandtheNorthnotlisteningto them,theyhadtotry to leave. OncetalkshadgonethroughwithlettingtheSouthgainautonomy,Darfurcameforwardwantingtobe treatedthesame.TheChineseobjectedthattheSecurityCouncilwouldpassnolegislationonthat, becausetheyhadavestedinterestinit. Ethiopia--HaileSelassie: HaileSelassiewasaveryimportantEthiopianleader.HisfatherwasthegovernororHarar, an early Islamiccityintheregion.BeforeSelassiebecameking,Menelikwastheleader.Menelikhadnochildren, andwasrelatedtoHaileSelassie'sgrandmother.HaileSelassiewasveryyoung,andaregentkeptthe throneforhimintheearlyyearsofhis life.Heruledinthe1930s whenItalyinvadedandtookoverfora fewyears.TheItaliansalsowantedtocoloniseBritishSomalilandandtheGermanswantedEgypt,sothe BritishandFrenchwenttowarwiththem,takingoverthewholeregionandgivingEthiopiabackits independence.TheyalsogaveEretriatoEthiopia,becausetheydidn'twantMuslimscontrollingaccess totheRedSea.The movementsinEretriaweredivided,somesayingtheyshouldbewithEthiopiaand somesayingtheyshouldbeindependent,withotherscallingforaconfederacy.In1960, HaileSelassie integratedthemintoEthiopia. HaileSelassiecamebackaftertheItalianoccupationendedandruleduntil1974.Hewantedto moderniseEthiopia,butbykeepingtheroyalline.MenelikandHaileSelassiehadcreatedland-owning classes.Hewantedtomoderniseincertainwaysbutkeeptheroyalfamilyandtraditionalclassesand thetraditionalchurchasitas. He wantedtomodernisethearmy,though. HecourtedtheAmericans,becausehewantedaidanddidn'ttrusttheFrenchorBritish.Hetriedto bringcommercialagriculture,openinggoodstobesenttotheUS. He wouldsendthingslikecoffeeto theoutsidefortrade.Thisisolatedthepeoplewhousedtoownland,withEthiopiagettingmoneyfrom internationalcapitalism. MenelikandSelassieexpandedtheEthiopianstateandcolonisedthesurroundingareas.Landlords madepeopleworkandwerepaid,andbecameveryrichwhiletheworkersbecamemuchpoorer.He wasnottryingto builda democraticstate,buta controlledtraditionalsystem. Therewasa significantresponsefromEthiopiangroups.TherewasamilitarycoupfromtheEthiopian royalguardbut hetookcare of that.He wantedto balancetheoldstructuresofchurch andlandlords owningland,butalsowantedtomoderniseandopencertaindoorsofagriculturetotradecoffeeto America.By1960, peoplewereunhappyandthefirstcouphappened.Hegotridofthat. Afterthefailedcoup,studentsstartedtoriseup.EducatedeliteweregoingtoEuropeandcomingback, havingseenhowdevelopededucationwaseverywhereelse.Theintellectualelitewerecomingbackto Ethiopiaandwerecriticalofthesystem,sayingitwasn'treformitwasaboutcentralisingpowerand keepingtraditionalstructures.Andchangeswerecosmetic.Then,Ethiopiabegantoexpandeducation. Studentswouldspendayearteachingintheinterior,andtheysawthepovertyinsomeareas.Theysaw thatitwas wrongand decidedtheyhadtodo something. Intermittentpeasantrevoltsbecamemorefrequent,buttheywererepressedquickly.Innorthern Ethiopia,theTigreareas,peoplewerealsogettingpoorer.Peoplewereusingthelandtoofrequently andtopsoilwaslosingnutrients,soitwashardertogrowfood.Peoplewerelookingforotherwaysout thancapitalism,becauseitcreatedclassdistinctionsandseparationofwealth. Inthe1970s, studentmovements,peasantuprisingsandfamineinTigreareaswereallmajorissues. Eritreanswerealsoorganisingthemselves,wantingindependence.Itallcametoa headfollowingan armyrebellionin1974.HaileSelassiewasabletoquellthis.Oneofthemeninchargeoftherevoltwas armyrebellionin1974.HaileSelassiewasabletoquellthis.Oneofthemeninchargeoftherevoltwas hispersonalbodyguard,butitfailed. EthiopiaafterHaile Selassie: Thearmycreateda committeecalledtheDergue,whichwouldtakeoverpowerfromHaileSelassie, jailinghim.Theyeventuallydeposedanddetainedhim,andhediedayearlater.Afterthis,amilitary governmenttookpowerin1974.Ethiopiahad alwaysbeenpro-West,butwiththistheexperienceda shifttotheEast.Initially,GeneralAmanAndom,arespectedgeneral,wasgivenpower.Hewasfrom Eritreabutveryintegrated.Whilehewasholdingameeting,ajuniorcolonelnamedMengistuHaile Mariankilledeveryoneandtookpower.Hewaspro-Soviet,andbecamepartoftheEasternBlocin 1977. TheSovietslovedthisbecausetheywantedtoturnthefeudalstateintoasocialiststate.Heruled until1990. AfterthefalloftheSovietUnionin1989, Mengistuhad nomore allies.HenegotiatedwiththeWest, whoallowedhimtogotoliveinZimbabweifheleftpeacefully.Allthenationalistmovementsin EthiopiawerecalledtoaconferenceinBritaintodiscusswhowouldleadthecountry.InLondon,they choseanewparty andreturnedto Ethiopia. GeneralAndomwasaveryAmharisedperson,andhisdeathledtoaleftmove.Thenewmilitary leadershipwassupportedinthisbyitsrevolutionaryallies,thestudentmovementsandthepeasants.In 1977, HaileMarianbecamea ruthlessleader,andcreatedaone-partystate.Hecrateda party calledthe Workers'party. In1977 therewasa warbetweenEthiopiaandSomalia,inwhichtheAmericanswerehelpingEthiopia andtheUSSR werehelpingSomalia.Mengistuwassocialist,sotheRussiansshiftedtheirallianceto EthiopiaandtheAmericansthenshiftedtoSomalia.

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Chapter 12, Problem 20 is Solved
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Textbook: Intermediate Accounting
Edition: 15
Author: Donald E. Kieso
ISBN: 9781118147290

The full step-by-step solution to problem: 20 from chapter: 12 was answered by , our top Business solution expert on 11/23/17, 05:08AM. The answer to “Research and development activities may include (a) personnel costs, (b) materials and equipment costs, and (c) indirect costs. What is the recommended accounting treatment for these three types of R&D costs?” is broken down into a number of easy to follow steps, and 31 words. This textbook survival guide was created for the textbook: Intermediate Accounting, edition: 15. This full solution covers the following key subjects: costs, materials, Accounting, development, equipment. This expansive textbook survival guide covers 24 chapters, and 633 solutions. Since the solution to 20 from 12 chapter was answered, more than 237 students have viewed the full step-by-step answer. Intermediate Accounting was written by and is associated to the ISBN: 9781118147290.

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Research and development activities may include (a)