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Anika [276]
3 years ago
12

Jason purchases a patent at a cost of $24,000. The patent has 8 years of legal life remaining from the date of purchase. a. The

patent is an intangible so it is amortized for cost recovery b. Jason can only recover his cost when he sells the patent c. Both statements are correct. d. Neither statement is correct.
Business
2 answers:
antiseptic1488 [7]3 years ago
8 0

Answer:

The correct  option is A,the patent is an intangible so it is amortized for cost recovery

Explanation:

The patent is an intangible asset that needs to be amortized on its remaining legal life in order to spread its initial costs of $24,000 over the periods when the income relating to the patent is received.

Hence, in order to recover the cost of patent , a patent amortization of  $3,000($24,000/8) would be recognized in the financial statements as an expense just like depreciation on intangible assets

mina [271]3 years ago
6 0

Answer: a. The patent is an intangible so it is amortized for cost recovery

Explanation:

Just as Depreciation exists for the wearing and tearing of tangible Assets, so does AMORTIZATION exist for Intangible Assets like goodwill, patents, licenses, copyrights and logos.

It follows essentially the same process as Depreciation and the useful life estimation is usually discretionary because some Intangible Assets can give benefits forever such as logos.

Generally though, only Intangible Assets with estimable useful lives are amortized such as Patents and Trademarks.

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What do you understand by marketing mix​
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Explanation:

When I think about the term marketing mix, I think about a set of tools that firms use to increase their profits such as price, product, promotion and place.

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3 years ago
Lists jobs that are hiring now for 16+ at the bell air mall
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3 years ago
Firm A has a 21 percent marginal tax rate, and Firm Z has a 28 percent marginal tax rate. Firm A owns a controlling interest in
Aliun [14]

Answer:

a. $7,505

b.$6,840

Explanation:

a. Computation for the after-tax cost of the expense assuming that Firm A incurs the expense

Using this formula

After-tax cost = Deductible Expense - (Firm A Marginal tax rate* Deductible Expense)

Let plug in the formula

After-tax cost = ($9,500 - ($21%*9500)

After-tax cost = ($9,500 - $1,995)

After-tax cost=$7,505

Therefore the after-tax cost of the expense assuming that Firm A incurs the expense is $7,505

B. Computation for the after-tax cost of the expense assuming that Firm Z incurs the expense

Using this formula

After-tax cost = Deductible Expense - (Firm Z Marginal tax rate*Deductible Expense)

Let plug in the formula

After-tax cost =$9,500 -(28%*$9500)

After-tax cost =($9,500 - $2,660 )

After-tax cost=$6,840

Therefore the after-tax cost of the expense assuming that Firm Z incurs the expense is $6,840

3 0
2 years ago
Whispering Corporation issued $480,000 of 7% bonds on November 1, 2017, for $515,707. The bonds were dated November 1, 2017, and
Snezhnost [94]

Answer:

                                                                    Debit                           Credit

Interest Expense                                        5,157

Long term Bonds                                                                            5,157

Explanation:

The 7%bond is issued by the Whispering Corporation on November 1, 2017 and the Whispering Corporation is using effective interest method with an interest rate of 6%, therefore the adjusting entry shall be recorded as at December 31,2017 in respect of interest accrued for two months i.e. November and December 2017 by following amount:

515,707*6%*2/12=5,157

The following adjusting entry shall be recorded in accounts of Whispering Corporation in respect of interest accrued as at December 31, 2017:

                                                                    Debit                           Credit

Interest Expense                                        5,157

Long term Bonds                                                                            5,157

4 0
3 years ago
Which description accurately explains verbal communication?
Fiesta28 [93]
C.
pretty sure that’s right but if not, sorry!
6 0
3 years ago
Read 2 more answers
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