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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

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Under the principles of agency law, any sale of goods by a salesperson in a store to a customer can be binding on the owner of t
NeX [460]

Answer: True

Explanation:

Under Agency Law in relation to employment, the salesperson is acting as an agent of the owner of the store and as such is their representative. As their representative, it is assumed that whatever they are selling is from the Owner whom they represent and as such can be binding on the owner.

This is why the Agent must act in the best interest of the owner because the owner could be held negligent for the actions of their agents. For instance, a salesperson will not be sued for a faulty equipment that caused harm but the store can.

4 0
3 years ago
What is the name given to the difference between the minimum and maximum values for a data set?
Setler [38]
The difference is called the range
4 0
3 years ago
When managers of firms in a competitive market observe falling profits, they may infer that the market is experiencing a. a viol
Oliga [24]

Answer:

c. the entry of new firms

Explanation:

  • The entry of the new firms in the market creating a  market supply curves to shift to the right side and as the curve shifts the markets price then starts to decline with it  
  • This declines the economic profits in the new and the existing firms as long as the profits exists  in the markets and entry will continue to shift to supply to the right.
  • The diversification of the melt and the fall in the monopoly of the firms start to take place.  
  • They take up resource ownership and technological developments. In short, they increase the competitiveness and bring rivalry into the market.
7 0
3 years ago
Producer surplus in a perfectly competitive industry is the same thing as revenue. the difference between profit at the profit-m
Damm [24]

Answer:

the difference between revenue and variable cost

Explanation:

As we know that

Producer surplus is = Total Revenue - Total Variable Cost

So here we can see that the producer surplus would be the difference between the revenue & the variable cost in the industry i.e. perfectly competitive

Hence, the second last option is correct

And, the other options are wrong

6 0
3 years ago
The generator is a popular youth hostel in london located near kings cross. The hostel provides a bed, showers, and breakfast in
seropon [69]

Answer:

The answer is $2000.

Explanation:

Total surplus = Consumer surplus + Producer surplus

                      = [ 0.5 (50-0) x ( 90 -45)] + [ 0.5(50-0) x (45 - 10)]

                      = [ 0.5 x 50 x 45] + [ 0.5 x 50 x 35]

                      = 1125 + 875

Total Surplus = $2000.

5 0
3 years ago
Read 2 more answers
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