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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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The impact of Inequality on businesses<br>​
ivanzaharov [21]

Answer: Plainly put, extreme income inequality, such as the kind found in Sub-Saharan Africa and South Asia, cause economic inefficiency. The relatively wealthy tend to save a much higher proportion of their income than the poor. In order to grow economically, a society must have robust rates of consumption. However, if most of the wealth of a country is owned by a very small percentage of its population, that wealth is saved, not spent. These savings are then invested by individuals and financial institutions.

Explanation:

3 0
3 years ago
In a project schedule, which types of dependencies are most common?
ANTONII [103]
Finish to start dependency- This is the most common type of dependency in project management as well as real life.
6 0
3 years ago
Read 2 more answers
Suppose that the equation for the SML is Y = 0.05 + 0.07X, where Y is the average expected rate of return, 0.05 is the vertical
timurjin [86]

Answer:

Risk free interest rate is 5%

Y is 15.5% at a Beta of 1.5

X is 0.29 when Y is 7%

Explanation:

Risk free interest is 0.05 which 5% as given in the equation

The average expected return is given by Y

Y=0.05+0.07X

Since Beta is the same as X, when equals 1.5,Y is calculated thus

Y=0.05+0.07(1.5)

Y=0.05+0.105

Y=0.155

Y=15.5%

The value of Beta at an average return of 7% is computed thus:

7%=0.05+0.07X

where X is the unknown

0.07=0.05+0.07X

0.07-0.05=0.07X

0.02=0.07X

X=0.02/0.07

X=0.29

The scenario  illustrates that the Beta, which is the risk of investment and the Y , the expected average return are positively correlated.

6 0
3 years ago
What does free enterprise capitalism allow to flourish?
SCORPION-xisa [38]
Free advertising to allow capitalism to flourish
4 0
3 years ago
Read 2 more answers
According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.
Rainbow [258]

Answer:

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.

  • $9,800

b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.

  • Dr FICA Social Security expense 6,600
  • Dr FICA Medicare expense 1,650
  • Dr Federal unemployment tax expense 200
  • Dr State unemployment tax expense 1,350
  •     Cr FICA Social Security payable 6,600
  •     Cr FICA Medicare payable 1,650
  •     Cr Federal unemployment tax payable 200
  •     Cr State unemployment tax payable 1,350

Explanation:

payroll taxes should be:

social security $110,000 x 6% = $6,600

Medicare $110,000 x 1.5% = $1,650

federal unemployment $25,000 x 0.8% = $200

state unemployment $25,000 x 5.4% = $1,350

total = $9,800

Both employees and employers must pay equal amounts of FICA taxes (social security and medicare), but only employees pay unemployment taxes.

8 0
3 years ago
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