Answer:
The amount of amortization expense each year is $500,000.
Explanation:
This can be calculated as follows:
Patent original cost = $3,000,000
Salvage value after 5 years = $500,000
Number of years to use before selling it = 5 years
Therefore, we have:
Annual amortization expense = (Patent original cost - Salvage value after 5 years) / Number of years to use before selling it = ($3,000,000 - $500,000) / 5 = $500,000
Therefore, the amount of amortization expense each year is $500,000.
Answer:
A. low; low
Explanation:
Value stocks usually exhibit low price-to-book ratios and low price-to-earnings ratios
Answer:
Option (d) , Bank 4 offers the highest amount after a year
Explanation:
The total amount from each of the interest rates can be expressed as;
A=P(1+r/n)^nt
where;
A=Future value of investment
P=Initial value of investment
r=Annual interest rate
n=Number of times the interest is compounded annually
t=number of years of the investment
a). Bank 1
P=x
r=6.1%=6.1/100=0.061
n=1
t=assume number of years=1
replacing;
A=x(1+0.061/1)^(1×1)
A=x(1.061)
A=1.061 x
b). Bank 2
P=x
r=6%=6/100=0.06
n=12
t=1
Replacing;
A=x(1+0.06/12)^(12×1)
A=x(1.005)^12
A=1.0617 x
c). Bank 3
P=x
r=6%=6/100=0.06
n=1
t=1
Replacing;
A=x(1+0.06/1)^(1)
A=1.0600 x
d). Bank 4
P=x
r=6%=6/100=0.06
n=4
t=1
A=x(1+0.06/4)^(4×1)
A=x(1+0.015)^4
A=x(1.061)
A=1.0614 x
e). Bank 5
P=x
r=6%=6/100=0.06
n=365
t=1
A=x(1+0.06/365)^(365×1)
A=1.0618
Option (d) , Bank 4 offers the highest amount after a year
Answer: c) $7,535
Explanation:
The Collection Float refers to the time that it takes for a deposited check to become available to the account owner after the check has been deposited.
The Average amount is calculated thus;
= No. of payments * Clearing days * average value of payment
= 138 * 1.3 * 42
= $7,535