Answer:
The item is identifiable and lacks physical substance.
Explanation:
Intangible asset: Intangible asset is that asset which cannot be seen or even touched. It has no physical existence.
Example: Goodwill, patents, trademarks, copyrights and other intellectual properties
In these types of assets, amortization is charged instead of depreciation.
It neither used for production, nor its gains any scientific or technical knowledge, and its value neither measure reliability
Hence, option a is correct
Answer:
It may be more expensive and time-consuming than using an intermediary
Explanation:
Direct selling makes it hard to reach new customers and also entails spending an extensive time in trying to convince prospective customers before sales is made. Sadly, in some situations, some prospects do not buy in on the intended product and thus, no sale is made and time wasted.
Answer:
$87 million
Explanation:
The projected benefit obligation (PBO) is a measurement of the present amount of money needed by a company to cover future pension liabilities. PBO uses how long the employee will work and any increased future obligations to the employee's pension.
Given that:
PBO at the beginning of the year = $80 million
Service cost for the year = $10 million
Interest = Discount rate × PBO at beginning of the year = 5% × $80 million = 0.05 × $80 million = $4 million
Actuarial (gain) Loss = Amount paid - Expected money = $5 million - $4 million = $1 million
Benefits paid paid by trustees = $6 million
The total pension expense for the year = PBO at year beginning + Service cost + interest - Actuarial (gain) Loss - benefits = $80 million + $10 million + $4 million - $1 million - $6 million = $87 million
Answer:
$1,350
Explanation:
Goodwill is the Excess of Cash Consideration over the Net Assets taken over. Net Assets taken over are measured at their Fair Market Value instead of Book Values at the Acquisition date.
Where,
Cash Consideration = $8,000
Fair Value of Net Assets Acquired ($6,000 + ) = $6,650
Therefore,
Goodwill = $8,000 - $6,650
= $1,350
Answer:
Explanation:
Sales: 850,000
Variable Cost: (850,000*60%) = <u>510,000</u>
Contribution Margin = 850k-510k= <em>340,000</em>
Fixed cost = 174,000
Depreciation = <u>75,000</u>
Earnings Before Taxes = <em>91,000</em>
Taxes (30%) = <u> (27,300)</u>
<h3>Net Income <u>
63,700</u></h3>
