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Snowcat [4.5K]
3 years ago
10

On October 1, 2018, Northern Inc. purchased a patent for $204,000 cash. Although the patent gives legal protection for 20 years,

the patent is expected to be used for only 10 years. The patent has no residual value. What will be the balance in the patent account on September 30, 2019?
Business
1 answer:
baherus [9]3 years ago
6 0

Answer:

$183,600

Explanation:

Since the expected useful life of the patent is only 10 years, instead of 20 years, its cost should be amortized in 10 years. That means that for every year that passes, Northern has to amortize $20,400 (= $204,000 / 10). Only one year passed between September 30, 2019 and October 1, 2018, so the patent's account on the balance sheet is $183,600 (= $204,000 - $20,400).

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Assume the auto market is initially in equilibrium with imports from Japan taking up a significant share of the market. Now assu
Zanzabum

Answer:

It depends

Explanation: If the quota is a lower value than the current level of japan sales, the equilibrium price will go up, because the supply will be lower than the demand pushing the price to rise and incentivizing other car suppliers to increase the offer. If the quota is higher than the current sales of Japanese cars, and if the demand keeps pushing the supply to go up, the market share of Japanese car will grow until meeting the quota. The price will go up until achieve equilibrium again. After that point, the market supply will be based on changes in the market no related to Japanese imports.

7 0
3 years ago
Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation
amm1812

Answer:

Explanation:

a. . What gain or income, if any, will the parties recognize on the transfer?

It should be noted that a gain or a loss will not be recognized when a property is being transferred to a company in order for the said property to be exchange for a stock. Therefore, none of the parties that are involved will get any gain or income.

b. What basis do Ann and Bob have in the stock in Robin Corporation?

Based on the question, Ann will have a basis of $150,000 while Bob will get ($30,000 + $15,000) = $45,000 in the stock in Robin Corporation.

c. What is Robin Corporation's basis in the property and services it received from Ann and Bob?

Robin Corporation's basis in the property and services it received from Ann and Bob is a value of $150,000 for the assets of Ann and $30,000 for Bob's asset.

5 0
3 years ago
If the cost of debt is the lowest choice among financing options, would increasing our percentage of debt always reduce our cost
kenny6666 [7]

The coat of Capital is calculated by taking the weighted average cost of all sources of Capital.Given that if the cost of Debt is the lowest choice among financing options then it will definitely reduce our cost of capital. Therefore the above statement is true because an Increase in low-cost options will also reduce a firm overall cost of capital.

A liability is an obligation by one party, the debtor, to require payment of money or other agreed-upon value to another party, the creditor. An obligation is a deferred payment or series of payments, distinguished from an outright purchase. Debts may be owed by sovereign states or countries, local governments, corporations, or individuals.

Commercial debt is generally subject to contractual terms regarding the amount and timing of principal and interest repayments[1]. Loans, bonds, bonds, and mortgages are all types of liabilities. In financial accounting, liabilities are a type of financial transaction rather than equity. The obligation is a debt to a society of criminals who owe them a debt of gratitude that cannot pay their debt.

Learn more about Debt here

brainly.com/question/24871617

#SPJ4

6 0
1 year ago
the yellow company has a current ratio of 2.65 . The acid test ratio is 2.01 . The current liabilities of the are company $45,00
ivann1987 [24]

Answer:

Amount of inventory = $28,800

Explanation:

Given:

Current ratio = 2.65

Acid test ratio = 2.01

Current liabilities = $45,000

Prepaid expenses = $0

Find:

Amount of inventory

Computation:

Current ratio = Current assets / Current liabilities

2.65 = Current assets / 45,000

Current assets = $119,250

Acid test ratio = [Current assets - Inventory - Prepaid expenses] / Current liabilities

2.01 = [119,250 - Inventory - 0] / 45,000

90,450 =119,250 - Inventory

Amount of inventory = $28,800

5 0
3 years ago
Securities not listed on one of the exchanges trade in the over-the-counter market. In this exchange, dealers "make a market" by
GREYUIT [131]

Answer:

(C) doing both of the above

Explanation:

When dealers "make a market", they do so by providing liquidity in a market that may lack such. Liquidity measures the ease with which participants can buy and sell in a market. Thus, by making a market, a dealer buys stocks for inventory when investors want to sell, and sells stocks from inventory when investors want to buy.

6 0
3 years ago
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