1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mrac [35]
3 years ago
10

Lamont Communications has amortized a patent on a straight-line basis since it was acquired in 2010 at a cost of $50 million. Du

ring 2013 management decided that the benefits from the patent would be received over a total period of 8 years rather than the 20-year legal life being used to amortize the cost. Lamont's 2013 financial statements should include:
A) A patent balance of $50 million.
B) Patent amortization expense of $2.5 million.
C) Patent amortization expense of $5 million.
D) A patent balance of $34 million.
Business
1 answer:
Fittoniya [83]3 years ago
6 0

Answer:

C) Patent amortization expense of $5 million.

Explanation:

Patent acquisition date is 2010

Cost of acquisition = $50 million

Initial Useful life = 20 years

Annual amortization = $50,000,000/20

                                  = $2,500,000

Between 2010 and start of 2013 is 3 years

Carrying value at the start of 2013

= 50,000,000 - 3(2,500,000)

= $42,500,000

If patent would be received over a total period of 8 years rather than the 20-year legal life being used to amortize the cost,

Patent amortization expense in 2013 = $42,500,000/8

                                                              = $5,312,500

This can be estimated as $5 million.

The right option is C) Patent amortization expense of $5 million.

You might be interested in
The opportunity cost of a choice is the _____ of the opportunities lost.a. Valueb. Interest
vlada-n [284]

Answer:

value

Explanation:

Opportunity cost or implicit is the value of the option forgone when one alternative is chosen over other alternatives.

For example, if I leave by job where i earn $100,000 per year to study economics in college. My opportunity cost is $100,000. This is the amount i would have been earning if i didn't go to college

5 0
2 years ago
Which of the following statements is correct?
myrzilka [38]

Answer:

A

Explanation:

7 0
3 years ago
Information technology has advanced dramatically within the last 25 years or so. At the same time there have been significant sh
Karo-lina-s [1.5K]

Answer:

Did the technology push the changes in the world, or was it the other way around? What evidence is opinion based upon or how did you draw your conclusions?

In my opinion the world started to change during the 1970s when Steve Jobs introduced the personal computer. Before him, only huge corporations could afford computers since they were huge and costed millions. Since then, information technology (IT) has increased in gigantic steps and when the internet was available for public use, the world as we know it changed.

When the world was struggling again during the great recession, my hero came back and changed the way IT industry again with the iPhone and the whole app culture. I am a little over 25, and I can tell that everything was very different when I was a small kid. You actually needed to read a newspaper and use encyclopedias (very large books).

Now everything is on the web and now most of us are even working using the internet. In just seconds we know what is happening in China or any other country in the world, while before all we heard about China was that were many Chinese and they were communists. IT has enabled whole new industries that boost the economy much more than any other manufacturing business ever had. The world would be a much different place if it wasn't for the Apple I, the internet or the iPhone.

4 0
2 years ago
To record a customer's check in full payment for a sale that was made the prior month, the company should debit the ____________
bearhunter [10]

To record a customer's check in full payment for a sale that was made the prior month, the company should debit the payable cash account.

<h3>Payable cash account</h3>

Based on the information given the appropriate journal entry to record a customer's check in full payment for a sale is:

Journal entry

Debit Payable Cash account

Credit Sales accounts

(To record customer's check in full payment)

Inconclusion to record a customer's check in full payment for a sale that was made the prior month, the company should debit the payable cash account.

Learn more about payable cash account here:brainly.com/question/4656883

6 0
2 years ago
What does the circular flow model show? answers?
Katena32 [7]
It shows how businesses markets and households all buy and sell from each other to make profit<span />
4 0
3 years ago
Other questions:
  • When solving the anagram losogcyhyp, humans place letters next to each other based on their knowledge of the english language. t
    11·1 answer
  • Betsy Union is the Crane Company manager and her performance is evaluated by executive management based on Division ROI. The cur
    10·1 answer
  • Which of the following accounts would be closed at the end of the year using the perpetual inventory​ system? A. Accounts Payabl
    7·1 answer
  • Which statement best explains the law of supply?
    9·2 answers
  • You have a small business that makes $50,000 accounting and economic profit for you. As a disabled person, you must work at home
    13·1 answer
  • When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a bla
    8·1 answer
  • Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000
    9·1 answer
  • Jayden is a project manager in a multinational company and is currently managing a complicated project. This has affected his me
    5·2 answers
  • Let illustrate what you you know about materiality concept.
    12·1 answer
  • What do surge protectors help prevent in the workplace?.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!