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
Aleksandr-060686 [28]
3 years ago
7

On January 2, 2019, Adelphi Company purchased a patent for $235,000 plus

Business
1 answer:
Ymorist [56]3 years ago
4 0

Answer:

The annual amortization expense for 2019 will be $35000.

Explanation:

The amortization expense for the patent calculated based on the useful life of patent. The purchase of value of $235000 plus $10000 gives the total value of $245000 while use the patent of 7 years.

The formula for amortization expense = (Cost of patent - Residual value ) / Useful life of patent)

amortization expense = ($245000-0)/7 = $35000

The legal life would not count due patent in business use for limited life compare to legal life of patent.

You might be interested in
What is Jared's accounting profit? Suppose Jared could have used his talents to run a similar kind of business instead. If he va
Deffense [45]

Answer:

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.  

<em>After working as a head chef for years, Jared gave up his $60,000 salary to open his own restaurant last year. He withdrew $50,000 of his own savings that had been earning 4% interest and borrowed another $100,000 from the bank at a rate of 5%. As the restaurant space he was leasing had no separate office, Jared converted his basement apartment into office space. He had previously rented the apartment to a student for $300/month. The following table summarizes his operations for the past year. </em>

<em>Total sales revenue    $590,000       </em>

<em>  Employee wages $120,000   </em>

<em>  Materials                 $350,000   </em>

<em>  Interest on loan $5,000   </em>

<em>  Utilities                 $10,000   </em>

<em>  Rent                 $25,000   </em>

<em>Total explicit costs              $510,000 </em>

<em>a, What is Jared's accounting profit? </em>

<em>b, Suppose Jared could have used his talents to run a similar kind of business instead. If he values his entrepreneurial skill at $10,000 annually, find Jared's total implicit costs. </em>

<em>c, What was Jared's economic profit last year?</em>

My answer:

a. , What is Jared's accounting profit?

As we know that accounting profit is the difference between total sales revenue and Total explicit cost, from the table we can find that:

$590,000  - $510,000  = $80,000 is the accounting profit

b. Jared's total implicit costs.

Implicit costs include his foregone wages ($60,000), the value of his entrepreneurial skill ($10,000), foregone rent on the apartment ($3,600 = 12 x $300) plus the foregone interest on his savings ($2,000 = .04 x $50,000). These total $75,600.

c. What was Jared's economic profit last year?

Explicit plus implicit, was $585,600 = $510,000 + $75,600. His economic profit is the difference between revenue and economic cost, or $4,400 (= $590,000 – $585,600).

8 0
3 years ago
the initial valuation of purchased intangible assets requires that the intangible asset is recorded at
bixtya [17]

Answer: original cost

Explanation:

7 0
2 years ago
If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied______________.
Ivenika [448]

Answer:

d. there is a shortage and the interest rate is below the equilibrium level.

Explanation:

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied, there is less money available for loans than the required, which characterizes a shortage. Higher interest rates decrease the demand while lower rates increase demand; if demand is higher than supply, the interest rate is lower than the equilibrium rate.

Therefore, there is a shortage and the interest rate is below the equilibrium level.

7 0
2 years ago
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports
Arada [10]

Answer:

a. $6,400.

Explanation:

In solving this question on Computing the amount of Purchasing department expense to be allocated to Assembly, we'll have to use the formula below:

Purchasing department expense to be allocated to Fabrication = Total Cost of purchasing department X number of purchase order in / Total numbers of purchase orders in all operating departments

= $32000 X 4/20 = $6,400

3 0
3 years ago
Gordon and lisa estimate that they will need $1,875,000 in 40 years for their retirement fund. if they can earn 8 percent annual
Helen [10]
The answer would be $9,234
3 0
3 years ago
Other questions:
  • New technology lowering the costs of production will cause the equilibrium price to ______________ and the equilibrium quantity
    6·2 answers
  • "the number of items in a product line represents the​ __________ and the total number of product lines a company carries repres
    10·1 answer
  • When labor unions successfully bargain for wage rates that are _____ the equilibrium wage rate, they may cause _____. higher tha
    15·1 answer
  • Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
    12·1 answer
  • Of the four attributes of a national or country-specific environment that have an important impact on the global competitiveness
    7·1 answer
  • Only one of the approaches to ethical reasoning has as its central tenet that actions are more right if they promote more happin
    14·1 answer
  • Assume that market and book values are equal for current assets, current liabilities, and debt and other long-term liabilities.
    5·1 answer
  • what would happen to the buying power of you investment after one year if your rate of return was 8% and the rate of inflation w
    9·1 answer
  • Markung's Co. is 100% equity-financed company (no debt or preferred stock); hence, its WACC equals it cost of common equality. M
    5·1 answer
  • 17. Which of the following is not a true statement
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!