Answer:
b. $37,500
Explanation:
a. Realized gain = (cash down payment + Purchase Note ) - Adjusted Tax basis
=(40000+ 160000)-75000
= 200000 - 75000
= 125000$
Gross profit percentage = profit /sales
=125000 / (40000 + 160000)
=125000 / 200000
=62.5%
year 1 Realised gain = downpayment * 62.5%
= 400000 *62.5%
=25,000$
Realised gain = installment payment * 62.5%
= 20000 * 62.5%
= 12,500$
i.e 37,500$
Answer:
The appropiate Journal Entry would be the following:
Amortization Expense Dr. $5.25 million
Patent Cr. $5.25 million
Explanation:
According to the given data, we have the following:
Original Cost of patent = $18.90 million
Hence, Annual Amortization (Old) = 18.90/9 = $2.1 million
Amortization till Date (2017 - 2021) = 2.1*4 = $8.4 million
Hence, Unamortized Value = 18.90 - 8.4 =$ 10.5 million
Also, Remaining Life = 6 - 4 = 2 Years
Therefore, The New Amortization = Unamortized Value/Remaining Life = 10.5/2 = $5.25 million
The appropiate Journal Entry would be the following:
Amortization Expense Dr. $5.25 million
Patent Cr. $5.25 million
Answer:
The correct answer is letter "C": They can effectively leverage the national and local advertising programs sponsored by the franchiser.
Explanation:
A franchise is a business, in which a franchisee acquires access to the franchisor's proprietary knowledge, processes, and trademarks. The franchisee buys the right under an established brand name to sell a product or service. Consumers already know the brand, so no additional resources must be used to launch the product.
Thus, <em>Celine is correct by arguing that by franchising Nava, Gina and her can take advantage of the domestic and international advertising programs of the firm.</em>
