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olasank [31]
3 years ago
10

Zack developed software that helps farmers to plow their fields in a manner that prevents erosion and maximizes the effectivenes

s of irrigation. Sparky paid a licensing fee of $60,000 for a copy of the software. Although Sparky can use the software as long as it wants, Zack expects that Sparky will use the software for approximately 5 years. Zack will not have any continuing involvement with Sparky following transfer of the license. How much revenue should Zack recognize in the first year of the contract?
Business
1 answer:
Reil [10]3 years ago
5 0

Answer:

$60,000 or $12,000

Explanation:

1. Since Zack expects Sparky to use the developed software for a period of five years, we could assume that the revenue for the first year of the contract would be $60,000.

2. Or if we Spread out the average revenue for a period of five years from the licensing fee, 60,000 / 5 (years) would give us 12,000 dollars per year.

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What is the relationship between Audit and tax services?
jeka57 [31]

Answer and Explanation:

The greatest contrast among expense and review is that with charge you will be working in either open bookkeeping or corporate bookkeeping. In case you're in the open bookkeeping region, you're going to survey the fiscal reports and afterward evaluate the duty obligation for the enterprise  

An expense review is an assessment of your government form by the IRS to confirm that your salary and deductions are precise. An assessment review is the point at which the IRS chooses to analyze your government form somewhat more intently and confirm that your salary and deductions are precise.

6 0
3 years ago
A machine can be purchased for $60,000 and used for five years, yielding the following net incomes. In projecting net incomes,
Mrrafil [7]

Answer:

2.505 Years

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

cash flow = ne income + depreciation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

60,000 / 5 = $12,000

Cash flows :

Year 1 = 15900

Year 2 = 21900

Year 3 = 44,000

Amount recovered in year 1 = $-60,000 + 15900 = -44,100

Amount recovered in year 2 = -44,100 + 21900 = -22.200

Amount recovered in year 3 = - 22,200 + 44,000 = 21800

payback = 2 years + 22,200 /44,000 = 2.505 years

5 0
3 years ago
Which of the following products is likely to have an inelastic supply reaction to a change in price?
anastassius [24]
The answer would be A. Shoes.

It is implied that a good has an inelastic supply if the supplier does not have a choice other than producing it despite the change in production cost. This would as well apply to the buyer, who needs the product no matter the pricing.No one can live without shoes, despite a spike in prices, we still need to buy them.
5 0
3 years ago
Read 2 more answers
Which of the following statements is CORRECT? (Assume that the risk-free rate is a constant.)a. If the market risk premium incre
podryga [215]

Answer:

E. If the market risk premium increases by 1%, then the required return will increase by 1% for a stock that has a beta of 1.0.

3 0
4 years ago
Wizard Co. purchased two machines for $250,000 each on January 2, 2005.
Vikki [24]

Answer:

B. $275,000

Explanation:

The second machine will be depreciate over time as it can later be used for operational purposes or another research projects. The first, as can only be used for a  research project It should be considered expenses for the entire amount regardless of the useful life.

Machine B useful life 10 years

depreciation expense: cost / useful life

250,000 / 10 = 25,000

machine A 250,000 + 25,000 depreciation for machine B = 275,000 total

7 0
3 years ago
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