Answer:
$210,000.00
Explanation:
In the first year,the amortization expense that would appear in Round Wheels ,Inc income statement is the sum of both intangible assets amortization expense where amortization for each intangible asset is computed using the below formula:
amortization expense=(cost of intangible asset-salvage value)/service life:
Patent amortization expense=($730,000-$0)/5=$ 146,000.00
Trademark amortization expense=($320,000-$0)/5=$64,000.00
Total amortization expense=$146,000+$64,000.00=$210,000.00
Answer:
(a) Total Cost for 3 years = $284,400
(b) Average time the customer spends in the System= 0.36
(c) X=71.26 units
Explanation:
The detailed explanation of the question is given in the attached files.
Answer:
$9.40
Explanation:
First we have to calculate the future value of the stock when it starts to pay the $1.40 using the perpetuity formula:
stock price in 7 years = $1.40 / 10.7% = $13.08
Now we have to find the present value of both next year's dividend and the perpetuity:
stock price = ($3.30 / 1.107) + ($13.08 / 1.107⁷) = $2.98 + $6.42 = $9.40
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer and Explanation:
a. The preparation of income statement is shown below:-
Income Statement
Service revenue $80,000
operating expenses
Salary expenses $28,000
Uncollectible accounts
expense $3,273
Total operating expense $31,273
Net income $48,727
Working Note :-
Days Amount Percentage Allowance balance
Current $16,800 0.01 $168
0-30 $5,100 0.05 $255
31-60 $4,000 0.10 $400
61-90 $2,000 0.30 $600
Over 90
days $3,700 0.50 $1,850
Total $31,600 $3,273
b. The computation of net realizable value of the accounts receivable is shown below:-
Net realizable value = Accounts receivable - Allowance for doubtful accounts
= ($80,000 - $48,400) - $3,273
= $31,600 - $3,273
= $28,327