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goblinko [34]
3 years ago
6

West Co. paid $50,000 for an intangible asset other than goodwill. Fair value of the asset is $55,000. West signed a contract to

sell the asset for $10,000 in 10 years. What amount of amortization expense should West record each year?
Business
1 answer:
gulaghasi [49]3 years ago
3 0

Answer:

$4,000

Explanation:

Intangible assets are usually amortized using the straight line depreciation method.

Depreciation expense = ( Cost - Salvage value) / number of years

= ($50,000 - $10,000)/ 10 = $4000

I hope my answer helps you.

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If interest rates are rising:
AleksandrR [38]

Answer:

c. planned investment spending is most likely to decrease.

Explanation:

High interests rates reduce the levels of investment in an economy.  Investments are capital intensive ventures and will require borrowing to finance them. When interest rates are high, loans become expensive. For a project to be viable in times of high-interest rates, it will need to have a very high rate of return.

When interest rates are high, banks will offer a higher rate of return on savings. Using savings to finance investments become more costly. Investors would prefer to put their money in a deposit account for higher interest payments than to invest.

High-interest rate thus slows down investments expenditures.  The cost of borrowing goes up while the incentives to save increase.

3 0
4 years ago
Nine years ago the Templeton Company issued 15-year bonds with a 12% annual coupon rate at their $1,000 par value. The bonds had
MAXImum [283]

Answer:

12.39%

Explanation:

in order to determine the realized rate of return we need to calculate the yield to call:

YTC formula = {coupon + [(call price - market price)/n]} / [(call price + market price)/2]

YTC = {$120 + [($1,080 - $1,000)/9]} / [($1,080 + $1,000)/2]

YTC = $128.89 / $1,040 = 0.1239 = 12.39%

In this case, the investor's realized rate of return was actually higher than the expected yield to maturity (YTM = 12% since bonds were sold at face value).

7 0
3 years ago
TimeEnough Inc. entered the low-priced digital watch market several years ago. This firm's earnings have been unsteady, but migh
vova2212 [387]

Answer:

Time Enough is a question mark.

Explanation:

In the BCG growth matrix, question marks are those firms that have a low market share, but that are growing, however, it is still uncertain where said firms will stand in the future.

Time Enough is a question mark because while the firm's earnings have been usteady, there is still evidence that the firm is growing, so the firm could become a star or a cash cow in the future.

8 0
4 years ago
3. What challenges do you anticipate in implementing some of the above steps? Explain.
erica [24]

In implementing some of your steps, anticipate the challenges as they are bound to e related to your specific goal.

<h3>What are challenges?</h3>

Generally, challenges are simply a competitive situation to determine who is superior in a specific field.

In conclusion, in carrying out set goals, missions, or said steps or series of activities we tend to meet challenges, and these challenges are anticipated by the nature of activity.

Read more about Humans

brainly.com/question/18540902

6 0
2 years ago
Diaz Company owns a milling machine that cost $126,600 and has accumulated depreciation of $92,600. Prepare the entry to record
PIT_PIT [208]

Answer:

Please see explanation

Explanation:

1.                                                                  Debit               Credit

Accumulated depreciation                      $92,600

Loss on disposal of machine                   $34,000

Machine                                                                                $126,600

2.

Cash                                                          $17,500

Accumulated depreciation                      $92,600

Loss on disposal of machine                   $16,500

Machine                                                                                $126,600

3.

Cash                                                          $34,000

Accumulated depreciation                      $92,600

Machine                                                                                $126,600

4.

Cash                                                          $40,900

Accumulated depreciation                      $92,600

Machine                                                                                $126,600

Gain on disposal of machine                                               $6,900

8 0
3 years ago
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