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r-ruslan [8.4K]
4 years ago
7

Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight

-line basis since 2017, when it was acquired at a cost of $9 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2021. Required:Prepare the year-end journal entry for patent amortization in 2021. No amortization was recorded during the year
Business
1 answer:
iren [92.7K]4 years ago
3 0

Explanation:

The journal entry is as follows

Amortization expense Dr $2.5 million

         To Patent $2.5 million

(Being the amortization expense is recorded)

The computation is shown below:

The annual amortization is

= $9 million ÷ 9 years

= $1 million

So, the amortization for four years from 2017 to 2021 is $4 million

Now the unamortized value is

= $9 million - $4 million

= $5 million

And, the remaining life is 2 years (6 years - 4 years)

So, the amortization expense is

= $5 million ÷ 2 years

= $2.5 million

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Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $30,5
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Answer:

$38,500

Explanation:

Sheridan's ending cash balance can be calculated as;

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= $5,500 + $30,500 + $13,500 - $11,000

= $38,500

Therefore, the ending cash balance is $38,500

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3 years ago
How do businesses determine the equilibrium price of a good or service?
Helen [10]

Answer:

C. They set a price where the demand matches the quantity they are

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Explanation:

The equilibrium price is the current market price as determined by supply and demand forces. It is the price at which buyers are happy to buy the entire supplied quantities. Suppliers are also happy to sell that quantity at the set price. The equilibrium price is, therefore, the intersection of the demand and supply curves.

At the equilibrium price, there is no excess or short supply of a product in the market.

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Nata [24]

Conservationists tend to believe that resources should be saved because they are important for a strong economic system and <u>used by all living things</u>

<h3>Who is a Conservationist?</h3>
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kifflom [539]

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Cross-ruffing coupons are coupons that are offered to a person buying a good on another good to encourage them to buy that other good as well. These are usually offered on goods produced by the same company or companies that have a relationship with each other.

They are a brilliant marketing ploy to result in one relating goods to another to boost sales. Offering a coupon on a bag of potato chips upon buying a bottle of Pepsi is there a cross-ruff coupon.

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