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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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Answer:

$1250

Explanation:

Total cost = total fixed cost + total variable cost

fixed cost is cost that doesn't vary with output

Variable cost is cost that varies with output

total fixed cost = quantity x average fixed cost

total variable cost = quantity x average variable cost

($2 + $0.50) x 500 = $1250

5 0
3 years ago
LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The f
Rom4ik [11]

Answer:

See below

Explanation:

a. Estimated ending inventory and cost of goods sold for March

Costs Retail

Beginning inventory $44,000 $66,000

Add:

Net purchases $211,000 $404,000

Less:

Purchase return ($6,000) ($8,000)

Freight in $21,396 $0

Net markups $0 $6,200

Goods available for sale $270,396 $468,200

Less:

Net mark down $0 ($3,900)

Goods available for sale( after markup) $270,396 $464,300

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= [(Goods available for sale at cost(after markup / Goods available for sale at retail (after markup) ] × 100

= [($270,396 / $464,300)] × 100

= 58.24%

8 0
3 years ago
Transactions for Buyer and Seller Sievert Co. sold merchandise to Vargas Co. on account, $148,600, terms FOB shipping point, 2/1
g100num [7]

Answer:

Part a

Debit : Accounts Receivable - Vargas Co. $148,600

Debit : Cost of Sales $89,160

Credit : Sales Revenue $148,600

Credit : Merchandise $89,160

Part b

Debit : Freight Expenses $2,100

Credit : Cash $2,100

Part c

Debit : Cash $133,740

Debit : Discount allowed $14,860

Credit : Accounts Receivable - Vargas Co. $148,600

Explanation:

A corresponding cost of sales must be recorded each time a sale is made. The freight costs are company costs for Sievert Co. and will be expensed in the income statement.

The payment due is at 90 % after the discount of 10% given that the payment is made within the credit term of 30 days.

8 0
3 years ago
Which of the following is true of taxes and subsidies? Group of answer choices Politicians like to levy taxes, but they are relu
Vadim26 [7]

Answer: If you tax something, you will get less of it; if you subsidize an activity, you will get more of it

Explanation:

Taxes are the levy that governments impose on people or firms. Subsidies are financial aid to companies in order to boost production and reduce price.

It should be noted that if you tax something, you will get less of it; if you subsidize an activity, you will get more of it. For example of an income is taxed, the owner of the income will geta lesser amount as tax will be removed.

6 0
3 years ago
There are two ways to calculate the expected return of a​ portfolio: Either calculate the expected return using the value and di
Arisa [49]

Answer:

Correct Answer:

C. Neither, both calculations give the same answer.

Explanation:

In any given business calculation that is expected to arrive at a particular solution, the solution obtained would always be the same irrespective of the method adopted. <em>For the example, the case of expected return of a portfolio in a business, the calculation would definitely give the same answer when two methods are adopted.</em>

8 0
3 years ago
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