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Butoxors [25]
3 years ago
14

Bricktown Exchange purchases a copyright for $50,000. The copyright has a remaining legal life of 25 years, but only an expected

useful life of five years with no residual value. Assume the company uses the straight-line method to record amortization. What is the carrying value of the copyright at the end of the second year?
Business
1 answer:
Semenov [28]3 years ago
8 0

Answer:

$30,000

Explanation:

Amortization is the process of expensing the cost of an intangible over its useful life. It is equivalent to depreciation in physical assets.

Under the straight-line depreciation, the depreciation amount is constant throughout the life of the asset.

For Bricktown, the cost of the asset is $50,000

use-life is five years,

the rate of depreciation will be 1/5 x 100

=1/5 x 100

20 percent

depreciation per year will 20% x $50,000

=20/100 x 100

=10,000

Accumulated depreciation at the end of the second year

=$10,000 x 2

=$20,000

The carrying value after two years will be the value of the asset - accumulated value. ( carrying value is the book value).

=$50,000 - $20,000

=$30,000

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Nikolay [14]

Answer:

$172.25

Explanation:

initial outlay for the project = -$350

cash flow years 1-5 = [($300 - $135 - $70) x (1 - 36%)] + $70 (depreciation expense) = $60.80 + $70 = $130.80

using an excel spreadsheet and the NPV function, we can calculate the project's NPV with an 8% discount rate:

=NPV(8%,130.80,130.80,130.80,130.80,130.80) - $350 = $522.25 - $350 = $172.25

we can also do it manually:

NPV = -$350 + $130.80/1.08 + $130.80/1.08² + $130.80/1.08³ + $130.80/1.08⁴ + $130.80/1.08⁵ = $172.25

6 0
3 years ago
An asset has an average historical rate of return of 10.1 percent and a variance of 0.0116751. What is the upper percentage rang
pochemuha

Answer:

20.91%

Explanation:

Provided information

Average historical rate of return = 10.1 %

Variance = 0.0116751

By considering the above information, the standard deviation would be

= Square root of Variance

= 10.81%

So the upper percentage range of return would be

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Since we have to find out the upper percentage so we added it otherwise we have to deduct it

8 0
3 years ago
A cartel differs from a monopoly in that ________.
Marrrta [24]
I believe the answer is: B. <span>businesses making the same product agree to limit production.

In a monopoly, only one single business exist that control the production of a certain goods in the market.
For cartel, there are a lot of established businesses with different ownership, but they agreed to control their production in order to maintain the price level in the market.
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3 0
3 years ago
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the statement that is true is c

7 0
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On January 1, 2016, Telespace Inc. grants 6 million non-qualified stock options to its employees. The stock options have exercis
Zina [86]

Answer:

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4 0
3 years ago
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