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uranmaximum [27]
4 years ago
9

Milano Gallery purchases the copyright on an oil painting for $300,000 on January 1, 2017. The copyright legally protects its ow

ner for 12 more years. The company plans to market and sell prints of the original for 19 years. Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017.
Business
1 answer:
murzikaleks [220]4 years ago
5 0

Answer and Explanation:

According to the situation, the solution of journal entries are as follows

1. Copyright Dr $300,000

             To Cash $300,000

(being the purchase of copyright is recorded)

Here, we debited the copyright as it increased the assets and credited the cash as it decreased the assets

2. Amortization expense Dr ($300,000 ÷ 12 years) $25,000

             To Accumulated amortization $25,000

(being the annual amortization is recorded)

Here we debited the amortization expense as it increased the expenses and credited the accumulated amortization as it decreased the assets

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Productive inefficiency could arise from a. a waste of available labor b. a lack of resources c. an improvement in technology d.
kolezko [41]

Answer:

The correct answer is a. a waste of available labor.

Explanation:

Productive efficiency (also known as technical efficiency) occurs when the economy is using all its resources efficiently, producing maximum production with minimum resources. The concept is illustrated in the Production Opportunity Frontier (FPP) in which all points of the curve are the points of maximum productive efficiency (that is, no more products can be achieved from the present resources).

This happens when the production of an economic good is achieved at the lowest possible cost, given the production of another good (s). In other words, when it is achieved, given the need to produce other goods, the highest possible productivity of a good. In a situation of long-term equilibrium for markets in perfect competition, it is where the average cost is the base on the average of the total cost curve, that is, the cost curve where CM = A (T) C.

6 0
4 years ago
An agribusiness firm may undertake three alternatives: buy cane sugar and manufacture various sugars and sweets, making a profit
nikitadnepr [17]
Bir tarım işletmesi şirketi üç alternatifi üstlenebilir: şeker kamışı satın alıp çeşitli şeker ve tatlılar üreterek 12 milyon dolar kar elde etmek; mısır satın alın ve etanol üretin, 16 milyon dolar kar edin; veya buğday satın alıp ekmek, ekmek ve hamur işleri üretip 13 milyon dolar kar edin. Bu üç seçenekle ilişkili fırsat maliyeti şudur: Cevap seçenekleri grubu
4 0
3 years ago
A company purchased $2,000 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $300 worth of merchandise. On
wlad13 [49]

Answer:

The correct journal entry to record the payment on July 12 is:

Debit Accounts Payable $1,700

Credit Merchandise $34

Credit Cash $1,666

Explanation:

Credit terms of 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

On July 5:

Debit Merchandise $2,000

Credit Accounts payable $2,000

On July 7:

Debit Accounts payable $300

Credit Merchandise $300

On July 12, the company pays and takes the appropriate discount:

2% x ($2,000 - $300) = $34

The company uses a perpetual inventory system, and records purchases using the gross method.

The journal entry to record the payment:

Debit Accounts Payable $1,700

Credit Merchandise $34

Credit Cash $1,666

8 0
4 years ago
A grocery store that uses local distributors is am example of what stage of globalization
Elena L [17]

Answer: Domestic stage

Explanation:

In the domestic stage of production, the entity is only involved in the domestic arena. The production facilities they have are limited to the country they are in and they only operate in the domestic market and at this point, the company is not trying to get into foreign markets.

The grocery store above uses only local distributors which means that they are only servicing the local market which therefore puts them at the domestic stage of globalization.

3 0
3 years ago
Paul Springer plans to save for a down payment for a house in 10 years. He will be able to invest $12,000 today in a money marke
Bad White [126]

Answer:

The correct answer is $20,772.92.

Explanation:

According to the scenario, the given data are as follows:

Payment (pmt) = $12,000

Rate of interest = 5.50%

Rate of interest per month (r) = 5.50 / 12 months = 0.46%

Time = 10 years (n) = 120 months

So, the future value can be calculated by using following formula:

Future value =  PMT ×(1+r)^n

= $12,000 × ( 1 + 0.46% )^120

= $20,772.92

Hence, the future value at the end of 10 years will be $20,772.92.

8 0
3 years ago
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