Question

1. If an exchange of nonmonetary assets lacks commercial substance, a loss can never be recorded....

1. If an exchange of nonmonetary assets lacks commercial substance, a loss can never be recorded.

True or False

2. The cost of research and development performed for others is expensed as incurred.

True or False

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Homework Answers

Answer #1

1. Answer: False

Explanation:

If an exchange of non-monetary assets lacks commercial substance, a loss can be recorded.

2. Answer: False

Explanation:

The cost of research and development performed for others is not expensed as incurred.

Research & Development is the pursuit of new knowledge and the translation of that knowledge to new products and processes. Improvement in techniques and processes is also "new" and it included in Research and development.

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