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Free_Kalibri [48]
3 years ago
15

On January 1, 2017, Sheridan Company had a balance of $417,000 of goodwill on its balance sheet that resulted from the purchase

of a small business in a prior year. The goodwill has an indefinite life. During 2017, the company had the following additional transactions. Jan 2 : Purchased a patent (6-year life) $301,350. July 1 : Acquired a 10-year franchise; expiration date July 1, 2027, $633,600. Sep 1 : Research and development costs $189,000. Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash.
Business
1 answer:
Thepotemich [5.8K]3 years ago
8 0

Answer:

patent      301,350 debit

       cash                 301,350 credit

franchise 633,600 debit

        cash               633,600 credit

development expense   189,000 debit

         cash                                    189,000 credit

year-end adjustment:

amortization expense   50,225 debit

         patent                                  50,225 credit

amortization expense   31,680‬ debit

         patent                                  31,680‬ credit

Explanation:

The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.

They will be adjusted at year-end for amortization:

301,350 / 6 = 50,225 amortization on patent

633,600 / 10 = 63,360 amortization on franchise

As it was concede on July 1st then, we will do half-year

63,360 / 2 = 31,680‬

The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.

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3 years ago
Let RUS be the annual risk free rate in the United States, RUK be the risk free rate in the United Kingdom, F be the futures pri
jeka57 [31]

Answer:

If RUS > RUK, then E < F ( C )

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E = spot exchange rate for $/BP

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The annual risk free rate of the united states must be higher than the annual risk free rate of the united kingdom. if this condition is met then the the British pound will have a forward premium ( F ) > ( E )

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Brandon is an office manager with a college degree, five years of experience, and a track record of being rated excellent at his
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Brandon needs to compare his salary to other employees of the company, he needs to pay special attention if:

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A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. Its profit margin and total as
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