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IRINA_888 [86]
3 years ago
15

On January 4, 2013, Franc Company purchased for $27,000 a patent that had been filed 8 years earlier. The patent covers a manufa

cturing process that the company plans to use for 15 years. On January 3, 2014, the company paid its lawyers $10,000 for successfully defending the patent in a lawsuit. Required:____.
Prepare all the journal entries associated with the patent in 2019 and 2020
Business
1 answer:
viva [34]3 years ago
6 0

Answer:

depreciation expense 2,514.28 debit

              patent                   2,514.28 credit

--to record 2019 amortizationon patent--

depreciation expense 2,514.28 debit

              patent                   2,514.28 credit

--to record 2020 amortization on patent--

Explanation:

On 2013 the patent is amortized:

27,000 / 15 = 1,800

On 2014 as the defend is successfull we capitalized into the atent account which now has 14 year of useful life:

27,000 - 1,800 + 10,000 = 35,200 balance at Dec 31th 2014

amorization per year:

35,200 / 14 = 2.514,2857

We will do the amortization at this rate until a new defense arise or the patent market vale decrease.

We aret givne with any additional information thus, we have to record for 2019 and 2020 the 2,514 depreciation

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Bill's employer offers a new health insurance benefit that covers preventive and cosmetic dental services, including orthodontic
Artyom0805 [142]

The given statement is FALSE.

Explanation:

This is an example of adverse selection.

Adverse selection applies to a case in which the purchasers and distributors of the insurance policy don't have the same details at their fingertips. A typical definition of health insurance is where a person wants to learn if he is ill and in need of health coverage before paying for a health insurance package.

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3 0
3 years ago
On April 1, Garcia Publishing Company received $33,480 from Otisco, Inc. for 36-month subscriptions to several different magazin
allochka39001 [22]

Answer:

Unearned Fees A/c Dr.  $8,370;

Fees Earned A/c  Cr. , $8,370.

Explanation:

The amount of  $33,480  paid is for 36 months.  Subscription per months will be $33,480 divided by 36 months

=$33,480 / 12

=$930

The subscription was paid on April 1st. Between April 1st and December 31st, there were 9 months.

The subscriptions for that year will be

= $930 x 9

=$8,370

The journal entries will be as follow

Unearned Fees A/c Dr.  $8,370;

Fees Earned A/c  Cr. , $8,370.

3 0
3 years ago
Cash to Monthly Cash Expenses Ratio Capstone Turbine Corporation produces and sells turbine generators for such applications as
Andrej [43]

Answer:

a) $1,918.17

b) 16.8 months

C) Yes, Capstone Turbine will remain in business.

Explanation:

a) To find the monthly cash expenses, we have:

Monthly cash expenses = negative cash flow from operations / 12

= 23018 / 12

= $1,918.17

b) To find the ratio of cash to monthly cash expenses, we have:

Ratio of cash to monthly cash expenses = Year end cash / monthly cash expenses

= $32,221 / $1,918.17

= 16.797

≈ 16.8 months

c) Yes, Capstone Turbine will remain in business because the calculated ratio above shows that they have cash to continue operations for approximately 16.8 months.

6 0
3 years ago
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