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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.

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A company purchased a delivery van for $23,000 with a salvage value of $3,000 on September 1, 2008. It has an estimated useful l
Maksim231197 [3]

Answer:

B

Explanation:

The value to depreciate is always the total asset value minus the salvage value. In this case, $23,000-$3000=$20,000. The straight line method formula is:

Depreciation  = value to depreciate/useful years

Depreciation (year) = $20,000/5= $4,000

This formula calculates de depreciation expense each year from the purchase date, which means that on septemeber 1 of 2009 the company will register a depreciation expense of $4,000. But, from september 1,2008 to  December 31, 2008 is less than a year we have to calculate the depreciation for each month.

Depreciation (month)= $4,000/12= $333,33

But since that depreciation would be for december 1, we need to calculate the depreciation for each day

Depreciation (day) = $333,33/31 = $10,75

From september 1 to december 1: 3 months, then $333,333 x 3= $1000

And from december 1 to december 31: 30 days, then $10,75 x 30= $322, 58

The depreciation expense on December 31 is: $1000+$322,= $1322,58 that is almost $1,333. On January 1 the depreciation expense would be $1,333.

5 0
3 years ago
What role does a project manager in an e-learning program play? bringing content to life and making it accessible tracking progr
olga55 [171]

Answer:

Tracking progress from kickoff to completion

Explanation:

The role of a project manager in an e-learning program play is tracking progress from kickoff to completion.

The project manager ensures all the highlighted steps are diligently followed from the start to the finish, so as to make the project successful and achieving its aims and objectives.

6 0
3 years ago
Hitzu Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 16, 2018, for $13,000 cash. Hitzu
Marina CMI [18]

Answer and Explanation:

1. The computation of warranty expenses is shown below:-

Warranty expense in 2018 = Warranty for a customer × Rate of sales

= $13,000 × 6%

= $13,000 × 0.06

= $780

2. The computation of estimated warranty liability is shown below:-

As we have calculated in part 1 so it is same that is

Estimated warranty liability in 2018 = $780

3. The computation of Warranty expenses in 2019 is shown below:-

In 2019 no warranty expense is there so the correct answer is $0

4. The computation of estimated warranty liability is shown below:-

Estimated warranty liability = Warranty expenses in 2018 - Repairs cost

= $780 - $121

= $659

5. The Journal entries is shown below:

a. Cash Dr, $13,000

            To Sales $13,000

(Being cash is recorded)

b. Cost of goods sold Dr, $6,500

        To Merchandise inventory $6,500

(Being cost of goods sold is recorded)

c. Warranty expense $650

         To Estimated warranty liability $650

(Being warranty expenses is recorded)

Estimated warranty liability Dr, $121

           To Repair parts inventory $121

(Being warranty liability is recorded)

4 0
2 years ago
Dawn graduated from high school and wants to get a credit card. how can dawn establish credit-worthiness?
yanalaym [24]
By keeping good credit
7 0
3 years ago
Okay this is starting to get annoying. I ask an actual question and I just have bots reply with a link to a virus download and t
Yuri [45]
It’s definitely is a huge problem. I would suggest just ignoring them and reporting them.
4 0
3 years ago
Read 2 more answers
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