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worty [1.4K]
3 years ago
6

In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocat

ion included the following items: $5 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items
Business
1 answer:
Ede4ka [16]3 years ago
6 0

Answer:

$1,000,000 per year

Explanation:

We can infer from the above information that the intangible assets with indefinite period are checked annually, for impairment hence patent is a limited life intangible.

Therefore;

The amount of amortization of patent at the end of first year

= Patent value ÷ Useful life

= $5 million ÷ 5 years

= $1,000,000 per year

Therefore, the company should amortize $1,000,000 per year.

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Answer:

Bad debts expenses shall be $ 850

Explanation:

The balance in the bad debts expense account shall be the aggregate of the amounts written off and the estimated uncollectible accounts based on ageing at the year end.

Amount written off during the year                                                 $ 650

Estimated uncollectible account provided at year end                 <u>$ 200</u>

Total Bad Debts expenses                                                               $ 850

4 0
3 years ago
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Answer:

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Which of the following statements is correct with respect to inventories? The FIFO method assumes that the costs of the earliest
jeka57 [31]

Answer:

Under FIFO, the ending inventory is based on the latest units purchased.

Explanation:

First in, first out inventory (FIFO) method values cost of goods sold using the purchase price of the "oldest" units in inventory. This means that the cost of the first units sold will be used to determine COGS.

On the other hand, last in, first out (LIFO) method uses the price of the most recently purchased units to determine the cost of goods sold.

7 0
2 years ago
If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, pho
alukav5142 [94]

The complete question should be:

If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, phone number, and e-mail in order to participate, the radio station is:

A.) Offering an exchange.

B.) Hoping to receive feedback.

C.) Overstepping its role.

D.) Implementing a CRM program.

E.) Behaving unethically.

Answer: Offering an exchange.

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6 0
3 years ago
A company manufactures hair dryers. It buys some of the components, but it makes the heating element, which it can produce at th
stellarik [79]

Answer: Please see answer below

Explanation:

a)No of batches of  heating elements produced annually =315 per day x 248 days

Batch size = 2300

No of batches  produced annually = 315 x 248 / 2300 = 33.96  = 33.97  batches

b)

Number  of inventory daily during  production  

= Daily production rate – Daily usage rate

= 830 – 315

= 515

so number of inventory on hand 4 days later = 515 per day x 4 days = 2060

c) Inventory for the  heating elements = Batch size x ( 1 – daily requirement/ Daily production ) = 2300 x ( 1 – 315/830 ) = 2300 x ( 1 – 0.38) = 1,426

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Average inventory = ( Max. inventory + Min inventory )/ 2 = 1426/2 = 713

d)we already have that  33.97batches of production of heating elements are required .

set up time of heating element per batch to use = 1/2 day

then Total set up time required in a year = 0.5 x 33.97days = 16.985 days

Number of heating elements required in a year = 315 per day x 248 days = 78,120

At production rate of 830 per day ,with no set up time required for heating element = 78120 /830 = 94.12 days

the total time required in a year for heating elements  will now be

= Actual production time + Set up time

= 94.12 + 16.985

= 111.105 days

which means the spare time available annually to produce other components = 248 days  – 111.105 = 136.895= 136.9 days

i )YES, since the time required to complete the other job is 6 days , there would be enough time because 6 days is less than 136.9 days of spare time

7 0
2 years ago
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