2. Use the Exact interest method, what is the amount of interest on a loan of

On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31

Tasya [4]

Answer:

April 1

Debit : Patent $1,500,000

Credit : Cash $1,500,000

December 31

Debit : Amortization $125,000

Credit : Accumulated Amortization $125,000

December 31

Debit : Impairment loss $6,000,000

Credit : Accumulated Impairment loss $6,000,000

Explanation:

Both the Amortization and Impairment loss reduce the value of assets. They are therefore expenses accounted in Income Statement.

Amortization : is the loss of value of an asset due to passage of time.

Amortization Expense = (Cost - Residual Amount) ÷ Useful Life

= ( $1,500,000 - $ 0) ÷ 12

= $125,000

Impairment loss : is the excess of the Carrying Amount of an Asset over its Recoverable Amount( Higher of Value in Use and Fair Value less Cost to Sell)

6 0

3 years ago

Fifo reports higher gross profit and net income than the lifo method when

ddd [48]

FIFO (First in, First Out) reports higher gross profit and net income than the LIFO (Last In, First Out) method when prices are increasing. The FIFO method refers to an inventory system wherein the first items purchased are thought to be sold while the most recent purchases make up the ending inventory. On the other hand, the LIFO method assumes the opposite. The ones sold are the most recent purchases while the earlier purchases are included in the ending inventory.

4 0

4 years ago

Why is career and technical education supported by the government?

Law Incorporation [45]

Answer:

it is supported by the government because in order for you to pay taxes you need a job and when you have a job you get you payed and you use the money to pay for the taxed. really it is just a big circle

4 0

3 years ago

An overgrown lawn is manicured by mowing it with a lawn mower is an example of

Marta_Voda [28]

An overgrown lawn is manicured by mowing it with a lawn mower is an example of physical change. Physical change is a change that affects the physical form of the substance or environment but not its chemical composition. In this example, the lawn is manicured by mowing it, so the physical form would be changed. But, the chemical composition of the lawn was maintained and was not change. So, this is clearly a physical change.

4 0

4 years ago

Marginal utility:

Monica [59]

Answer:

a. is the change in total satisfaction derived from consuming one more unit of a good.

Explanation:

Marginal utility: It defines as changes in total satisfaction of consumers with one additional unit changes in the consumption of goods. It derives satisfaction level of consumer with the units of goods consumed, similarly usage of product changes with the number of the product we have in stock or purchased.

Formula; Marginal utility= $\frac{Changes\ in\ total\ utility}{Changes\ in\ number\ of\ units\ consumed}$

There are several types of marginal utility:

Zero marginal utility.
Positive marginal utility.
Negative marginal utility.
Increasing marginal utility.
Diminishing marginal utility.

7 0

3 years ago