1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Soloha48 [4]
3 years ago
8

Blue Co. has a patent on a communication process. The company has amortized the patent on a straight-line basis since 2014, when

it was acquired at a cost of $52 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2018 (before adjusting and closing entries). What is the appropriate patent amortization expense in 2018? (Do not round your intermediate calculation.)
Business
1 answer:
myrzilka [38]3 years ago
7 0

Answer:

$14.44 million

Explanation:

The computation of Amortization Expense 4 Years is shown below:-

Annual Amortization Expense = Beginning cost ÷ Life year

= $52 million ÷ 9

= $5.78 million

Amortization Expense 4 Years = Annual Amortization Expense × 4 years

= $5.78 million × 4

= $23.12 million

So,

Unamortized Cost = Beginning cost -  Amortization Expense 4 Years

= $52 million - $23.12 million

= $28.88 million

Year 2018 Amortization Expense 4 Years = Unamortized Cost ÷ Estimated remaining life

= $28.88 million ÷ 2

= $14.44 million

So, for computing the Amortization Expense 4 Years we simply applied the above formula.

You might be interested in
Sylvester Motors Inc. has the following balances at the end of the accounting period:
Makovka662 [10]

Answer:

C $49,000

Explanation:

none

4 0
2 years ago
A $1,000 face value bond is currently quoted at 101.2. the bond pays semiannual payments of $28.50 each and matures in six years
goblinko [34]
Coupon rate is the yearly interest earned by a loan and it can be calculated with

C = \frac{i}{p}

where i is the annual interest and p is the par value of the bond or the initial loan amount.

For this particular case, since the semiannual payment is $28.50, then the annual payment is 2 x 28.50 = $57.00.

Thus, we have 

C = \frac{57}{1000} = 0.057

From this, the coupon rate is 0.057 x 100% = 5.7%.
Answer: 5.7%

7 0
3 years ago
A withdrawal of cash from a bank that does not put the bank's reserves below the level of required reserves will ______.
Svetach [21]

If there is a withdrawal of cash from a bank which does not go below the required reserves, the withdrawal will not change money supply but will reduce bank checkable deposits.

<h3>What does withdrawing from a bank do?</h3>

If one withdraws money from a bank, it will reduce the bank's checkable deposits as these are made of cash that was deposited by entities.

As regards total money supply however, these withdrawals will only have an impact if the withdrawal causes bank reserves to fall below the required reserves.

Find out more on required reserves at brainly.com/question/10684321.

4 0
2 years ago
Cart Vader is a new business venture aimed toward selling golf carts to be used as neighborhood recreational vehicles. The new C
storchak [24]

Answer:

d. perfect price discrimination.

Explanation:

According to my research on different pricing strategies, I can say that based on the information provided within the question the business owner is attempting to practice perfect price discrimination. This term refers to when a company charges different prices for each sale of the same product, usually charging the highest possible price and allowing room for negotiations. Which is exactly what Cart Vader is doing with it's golf carts.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Point Company paid $4,000 cash to purchase a new machine. The company also paid $500 cash for an initial training cost that was
spin [16.1K]

Answer:

Dr Machinery $4500

Cr Cash                      $4500

Explanation:

The reason is that the Internation Accounting Standard IAS 16 Property, Plant & Equipment says that the company must capitalized all those costs that are necessary to make the asset ready to use which means that the cost of training which is $500 and purchasing cost which is $4000 must be capitalized as part of the asset.

So the entry would be:

Dr Machinery $4500

Cr Cash                      $4500

4 0
3 years ago
Other questions:
  • Your supplier offers a discount for purchase of 100 steaks at a time. You normally sell about 5 steaks a night and you don’t lik
    5·1 answer
  • The Green Company, an accrual basis taxpayer, provides businessconsulting services. Clients generally pay a retainer at the begi
    6·1 answer
  • Vega corporation expects to pay a 4​% bonus on net income after deducting the bonus. assume the corporation reports net income o
    9·1 answer
  • 1. Which of the following is not characteristic of a corporation?
    10·2 answers
  • Mike receives a payroll check from National Computer Systems, Inc., and indorses it by signing his name on the back of the check
    12·1 answer
  • Liam works at an IT firm. He finds that the activities carried out by his team are very complex and struggles to complete his ta
    14·1 answer
  • Accurate Metal Company sold 39,000 units of its product at a price of $390 per unit. Total variable cost per unit is $196, consi
    5·1 answer
  • In one ancient civilization, hunters shared fresh meat with other individuals in a group without an explicit timeframe or agreem
    13·1 answer
  • ░░░░░▐▀█▀▌░░░░▀█▄░░░ ░░░░░▐█▄█▌░░░░░░▀█▄░░ ░░░░░░▀▄▀░░░▄▄▄▄▄▀▀░░ ░░░░▄▄▄██▀▀▀▀░░░░░░░ ░░░█▀▄▄▄█░▀▀░░ ░░░▌░▄▄▄▐▌▀▀▀░░ ▄░▐░░░▄▄░█░
    12·1 answer
  • the creation of new products and production methods that completely destroys the market positions of firms that are wedded to ex
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!