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
Brums [2.3K]
3 years ago
8

Once Miracle learned of the competing printer and adjusted the expected future cash flows from its original​ patent, was this as

set​ impaired? If​ so, make the impairment adjusting entry. ​(Record debits​ first, then credits. Exclude explanations from any journal entries. For transactions that do not require an​ entry, make sure to select​ "No entry​ required" in the first cell in the​ "Accounts" column and leave all other cells​ blank.)
Business
1 answer:
Darya [45]3 years ago
7 0

Answer:

(a) Entry for purchase of patent :

Patent a/c debit $600,000.

To Cash / Bank A/c. $600,000.

(b) Amortisation : (legal protection for 20 years) >> 600,000/20 = 30,000 per annum

Amortisation expenses -Patents $30,000

To Patents account $30,000

(c) Impairment Loss on Patents ac. debit 270,000 (see calculations below)

To Patents account 270,000

(Value of patents at end of 4 years = 600000-120000=480,000)

Expected future value = 210,000

Impairment = 480,000-210,000=270,000

You might be interested in
Piedmont Hotels is an all-equity firm with 48,000 shares of stock outstanding. The stock has a beta of 1.19 and a standard devia
user100 [1]

Answer:

The firm set as the required rate of return for the project is 14.732%

Explanation:

For computing the required rate of return, the following formula should be used which is shown below:

= Risk free rate of return + (Beta × market risk premium) + adjustment

where,

Risk free rate of return is 4.1%

Beta is 1.19

Market risk premium is 7.8%

Adjustment is 1.35%

Now put these values to the above formula

So, the value wold be equal to

= 4.1% + (1.19 × 7.8%)+ 1.35%

= 4.1% + 9.28% + 1.35%

= 14.732%

The standard deviation is irrelevant. Therefore, it is not considered in the computation part.

Hence, the firm set as the required rate of return for the project is 14.732%

8 0
3 years ago
Blue Spruce, Inc. is considering purchasing equipment costing $72000 with a 6-year useful life. The equipment will provide annua
Stella [2.4K]

The approximate internal rate of return for this investment is $0.054.

<h3><u>What is rate of return?</u></h3>
  • The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
  • You determine the percentage change from the start of the period to the end when computing the rate of return.
  • Any type of investment instrument, including real estate, bonds, equities, and fine art, can be subject to a rate of return (RoR).

Any asset can be used with the RoR as long as it is purchased once and generates cash flow at some point in the future. The attractiveness of various investments can be determined, in part, by comparing their historical rates of return to those of comparable assets.

We have, (Net Annual cash inflow x PV of an Annuity of 1 at 10%) - Initial Investment = Net present value (find closest to zero))

($17,514 x 4.111) = $72000.054 - $72,000 = $0.054 (closest to zero).

Know more about rate of return with the help of the given link:

brainly.com/question/24232401

#SPJ4

6 0
1 year ago
What particular business conditions and/or strategy might make telling or not telling the more advantageous option?
const2013 [10]

Telling employees gain motivates personnel to do their high-quality work. after they realize there are possibilities for advancement, they will do their process to a better standard to electrify those who are looking.

4 everyday business-level strategies emerge from those choices: (1) huge cost management, (2) wide differentiation, (three) targeted cost leadership, and (four) centered differentiation. In rare cases, companies are able to provide both low costs and particular capabilities that customers discover acceptable.

Put clearly, business strategy is a clear set of plans, actions and desires that outlines how a commercial enterprise will compete in a selected market, or markets, with a product or number of products or services.

Learn more about business here: brainly.com/question/24448358

#SPJ4

8 0
2 years ago
Cash Flows. Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to intro
Tema [17]

Answer:

Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.

Explanation:

For calculating the present value, all the cost and revenue will be considered.

Original revenue = Sale of 10 million chips

10 million \times $20 = $200 million

Less: Cost = 10 million \times $6 = $60 million

Net Revenue = $140 million

In case of introducing new chips

Revenue will be as follows

12 million \times $25 + 3 million \times $20

= $300 million + $60 million = $360 million

Less: Costs 12 million \times $8 + 3 million \times $6

= $96 million + $18 million = $114 million

Net Revenue = $360 - 114 = $246 million

Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.

3 0
2 years ago
A face-saving technique in which all parties involved in an embarrassing situation ignore it and continue their
Marina CMI [18]
C) Studied nonobservance   <span>

A face-saving technique in which all parties involved in an embarrassing situation ignore it and continue their conversation or interaction as though the embarrassing situation never happened is referred to as studied nonobservance. In this case, studied nonobservance is the act of diminishing or undermining a set of faulty, distressing or embarrassing behaviors or actions. Includes the flaws, lack of awareness and defects are ceased to keep the person or individual “on the move” as not to ruin the ego or the self. </span>  



7 0
3 years ago
Other questions:
  • The amount of use that the company expects to obtain from an asset before disposing of it is referred to as the _____________ li
    13·1 answer
  • What is a good way to find a business idea that'll put your talents and interests to the best use? A. Buy a local business that
    11·2 answers
  • Suppose Indiana produces only steel and corn, with fixed amounts of land, labor, and capital resources. Which scenario best sets
    12·1 answer
  • Macy Corporation's relevant range of activity is 5100 units to 11,500 units. When it produces and sells 8300 units, its average
    7·1 answer
  • Liabilities can be best described as:A. The amount of expenses over the past year.B. The amount expected to be distributed to st
    8·2 answers
  • Sam was willing to contribute $20 this year to his local college radio station. However, after learning that the radio station h
    14·1 answer
  • The Patriot Act requires that telecommunications carriers and manufacturers of telecommunications equipment modify and design th
    5·1 answer
  • Including scholarships and financial aid, Madeline has $41,000 to spend on
    12·1 answer
  • Does each Subway $5 Footlong cost the franchisee more than $5? Subway, the fast food restaurant franchise, recently announced it
    13·1 answer
  • 1. Sell product for $25,000 with historical cost of $20,000 2. Sell product for $20,000 with historical cost of $16,000 3. Sell
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!