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worty [1.4K]
2 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]2 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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Ellen is a manager who helps develop sales promotions, targets customers for upselling, and searches for potential new customers
Vinvika [58]

Answer:

Letter B is correct. <u><em>Sales budget.</em></u>

Explanation:

The sales budget is characterized by a company's sales expectations for a given budget period.

Organizations typically present the sales budget in monthly or quarterly format, with relevant information coming from a variety of sources. The calculation is made according to the number of units sold in the first line, the expected average price in the second line and the total sales in the third line. It is important to remember that when there are marketing promotions there may be a unit price adjustment that must be specified in the sales budget.

So a well-crafted sales budget ensures the quality of offering the right price on the right product and quantity at the right time and place. For this is one of the essential steps for control and success of an organization, as it relates to the marketability of purchasing consumer goods and services.

4 0
3 years ago
The two main sources of stockholders' equity are a.net income retained in the business and dividends paid b.investments by stock
Lady_Fox [76]

Answer:C - investments by stockholders and net income retained in the business

Explanation: Stakeholders equity are the investments made by investors into the business plus any profit retained by the business.

Stakeholders equity can also be said to be the gross profit less all liabilities for a specified period. This also includes assets that the company owns.

It does not include dividend issued for the period as dividend is also a liability to the company.

7 0
3 years ago
In Country A, the price of wheat has increased greatly over the past year. Because of this change, farmers in Country A are plan
Dominik [7]

A: Wheat is relatively inelastic

5 0
3 years ago
Read 2 more answers
You are the newly assigned project manager for the James Madison construction project. To what document should you look for auth
Ipatiy [6.2K]

Answer:

The project Charter.

Explanation:

A project charter is a structured, generally short documents that outlines the project as a whole — including what the goals are, how it will be implemented, and who are the stakeholders. It is a crucial ingredient of project planning, since it is used throughout the life cycle of the project.

7 0
3 years ago
Christie and Jergens formed a partnership with capital contributions of $390,000 and $490,000, respectively. Their partnership a
xxMikexx [17]

Answer:

Christie 's share =  $ 37759.09

Jergens Share = $ 47,441

Explanation:

Partner's Profit share are calculated after the deduction of salary or any other interest incomes.

Profit for the current year = $ 163,000

Christie' s Salary                    $ 69,000

Christie Interest Income          $ 3900

10 % 0f $ 390,000

Jergens  Interest Income         $ 4900

10 % 0f $ 490,000

Profit  Balance                                       $ 85,200

Profit Sharing Ratio

Christie : Jergens

390,000: 490,000

39: 49

Christie 's share = $ 85,200 * 39/88= $ 37759.09

Jergens Share = $ 85,200 * 49/88= 47440.9= $ 47,441

6 0
3 years ago
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