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Juliette [100K]
3 years ago
15

In January, 2006, Findley Corporation purchased a patent for a new consumer product for $720,000. At the time of purchase, the p

atent 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 2011 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 2011, assuming amortization is recorded at the end of each year?
a. $480,000.
b. $360,000.
c. $72,000.
d. $48,000.
Business
1 answer:
bezimeni [28]3 years ago
8 0

Answer:

b. $360,000.

Explanation:

Data provided in the question

Purchase value of the patent = $720,000

At the time of purchase, the patent life is 15 years

And, the useful life of the patent is 10 years

So, the amortization expense recorded value is

= $720,000 ÷ 10 years × 5 years

= $360,000

The five years is counted from the year 2006 to the year 2011

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The best and the most correct answer among the choices provided by the question is the the second choice. The people that would most likely contact Sharon are her office mates from their department. I hope my answer has come to your help. God bless and have a nice day ahead!
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Exercise 10-7 Direct Materials Variances [LO10-1] Huron Company produces a commercial cleaning compound known as Zoom. The direc
Musya8 [376]

Answer:

Direct Material Price Variance = $1,100 Favorable

Direct Material Quantity Variance = - $9,075 Unfavorable

Explanation:

Direct Material Price Variance = (Standard Price - Actual Price) X Actual Quantity

Provided Standard Price = $2.50

Actual Price = $2.40

Actual Quantity = 11,000 pounds

Direct Material Price Variance = ($2.5 - $2.4) X 11,000 pounds

                                                  = $1,100 Favorable

This is favorable because actual price is less than Standard Price.

Direct Material Quantity Variance = (Standard Quantity - Actual Quantity) X Standard Price

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Direct Material Quantity Variance = (6,270 - 9,900) X $2.5

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Final Answer

Direct Material Price Variance = $1,100 Favorable

Direct Material Quantity Variance = - $9,075 Unfavorable

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3 years ago
Alpine West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day, adult ticket can be purchased for $80.
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Answer:

Alpine West, Inc.

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b. General Journal for

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Credit Deferred Revenue $460

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December 31:

Debit Deferred Revenue $92

Credit Service Revenue $92

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c. In Alpine West, Inc.'s income statement and balance for 2013, the following amounts will be included in relation to the sale of the season pass to Jake Lawson:

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Balance Sheet: Deferred Revenue (Liabilities side) $368 ($460 - 92).

Explanation:

Alpine West, Inc. will make the above entries in accordance with the accrual concept and matching principle of generally accepted accounting principles.  These require that revenue, income, and expenses related to a period must be accrued for that period whether actually received / paid or not.  It also means that the costs incurred for any revenue generated must be matched to the revenue and vice versa for that particular period.

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Answer:

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Their roles usually involve providing the financial guidance, developing financial reports, making direct investment activities, etc.

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Learn more here: brainly.com/question/24859434

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