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Zolol [24]
3 years ago
5

In January 2013, Findley Corporation purchased a patent for a new consumer product for $960,000. At the time of purchase, the pa

tent was valid for fifteen years. Due to the competitive nature of the product, however, the patent was estimated to have a useful life of only ten years. During 2018 the product was permanently removed from the market under governmental order because of a potential health hazard present in the product.
What amount should Findley charge to expense during 2018, assuming amortization is recorded at the end of each year?
Business
1 answer:
GuDViN [60]3 years ago
7 0

Answer:

$480,000

Explanation:

The basis for the amortization (or charge to p/l) of the patent will be the estimated life of 10 years.

As such, the charge to the income statement yearly (which is the result the cost divided by the useful life)

= $960,000/10

= $96,000

Between January 2013 and the start of 2018 is 5 years. Hence the accumulated amortization on this patent

= $96,000 * 5

= $480,000

The carrying amount of the patent as at then

= $960,000 - $480,000

= $480,000

Since during 2018 the product was permanently removed from the market under governmental order because of a potential health hazard present in the product as such the amortization expense for 2018 will be equivalent to the the carrying amount which is to be expensed or written off.

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Explanation:

4 0
4 years ago
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How has the pattern of trade changed in the United States since 1960?
ki77a [65]

Answer:

The correct answer is letter "B": Imports have grown faster than exports, and the United States has become a net importer.

Explanation:

International trade is not just a major engine of the U.S. economy, but for the global economy. The total trade share in terms of the global Gross Domestic Product was 25% in 1960 and it has raised to 56% in 2017. Though, imports have surpassed the level of exports, making America be a net importer. Main imports are in the form of raw materials for the production of different goods mainly vehicles, and clothing.

5 0
3 years ago
Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one−time−only special order for a product similar
valentina_108 [34]

Answer:

the minimum acceptable price of this special​ order is $410.

Explanation:

Minimum acceptable price for the special order is the price that gives a Incremental<em> contribution margin of zero</em> or <em>a price that covers all costs related to supporting the special offer</em>.

Since the company has <em>excess capacity</em>, ignore the fixed costs as these are irrelevant for this decision

Costs to Provide for the Special Offer : Minimum acceptable price

Direct materials                           $150

Direct labor                                   $60

Manufacturing support               $105

Marketing costs                            $95

Minimum acceptable price         $410

6 0
3 years ago
Under the provisions of the Investment Advisers Act of 1940, if an adviser takes custody of customer funds or securities, accoun
iogann1982 [59]

Answer:

Quarterly

Explanation:

According to the provisions of the Investment Advisers Act of 1940, in the case when an advisor takes the customer custody in term of funds or securities so the account statement must be sent to the customer on the a quarterly basis i.e. four times in a year. Here four times means every three months

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8 0
3 years ago
The management of Irving Inc., an apparel company based in Letonia, decides to expand the company's operations to several other
sergeinik [125]

Answer:

The answer to this question is B. It can modify its Web site according to the foreign countries' cultures.

Explanation:

A business environment is all internal and external factor that is capable of influencing organisations decision. While internal environment are mostly within the business itself, external factors are from without which means the business has little or no control  

For organisations to succeed in a foreign market, it is required to deal with large society and cultural differences that is practiced in that country.

 social - cultural factor is one of the external factors that can influence a business decision from without in the environment in which it operates.

The social cultural factors which includes belief, norms and customs of the people in that environment are what the business should adhere to in other to succeed in such country.

Therefore, modifying its web site according to the foreign country's culture is a step to achieve what has been explained above.  

Hence the answer to this question is B   It can modify its Web site according to the foreign countries' cultures.

3 0
3 years ago
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