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
adell [148]
3 years ago
8

X Company purchased a patent on January 3, 2017 from Y Company for $145,000. An attorney drew up the contract between X & Y

at a total cost of $15,000, which was split equally by the parties. The patent had a carrying value of $90,000 on Y’s books. X expects to be able to benefit from the patent for 10 years, after which it is expected to be of little to no value. What will be the carrying value of the patent on X Company’s December 31, 2018 balance sheet?
Business
1 answer:
erica [24]3 years ago
4 0

Answer:

$122,000

Explanation:

Cost of Patent:

= Cost of patent + (total cost ÷ 2)

= 145,000 + (15,000 ÷ 2)

= $152,500

Accumulated depreciation for 2 years:

= (Cost of Patent ÷ Benefited years) × No. of years

= (152,500 ÷ 10) × 2

= $30,500

Carrying value on December 31,2018:

= Cost of Patent - Accumulated depreciation for 2 years

= $152,500 - $30,500

= $122,000

You might be interested in
A bank with a negative repricing (or funding) gap faces refinancing risk. Group of answer choices True False
guajiro [1.7K]

Answer:

True

Explanation:

hope this helps :(

3 0
2 years ago
Radoski Corporation's bonds make an annual coupon interest payment of 7.35% every year. The bonds have a par value of $1,000, a
gtnhenbr [62]

Answer:

YTM = 0.6940%

Explanation:

THe Yield to Maturity (YTM) is the return that you expect from the bond if you held the bond till maturity.

The formula would go as:

YTM = \frac{F}{P}^{\frac{1}{n}} -1

Where

F is the face value, or par value

P is the current price

n is the time period, maturity period

Given,

F = 1000

P = 920

n = 12, we have:

YTM = \frac{F}{P}^{\frac{1}{n}} -1 = \frac{1000}{920}^{\frac{1}{12}} -1=0.006972

Thus, the yield to maturity would be:

YTM = 0.6940%

5 0
3 years ago
A company is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. Ho
Bumek [7]

Answer:

Value of company = $982.16

Explanation:

The free cash flow is the cash generated by a company that is not retained and reinvested. It is the cash flow available to all providers of capital . It is available to pay dividend or finance other project

The value of the company would be the present value of its free cash flow discounted at the weighted average cost of capital.

Value of company )year 4= 85/(0.12-0.065) = 1,545.45

Value of company (in year 0) = 1,545.45× 1.12^(-4)= 982.16

Value of company = $982.16 millions

7 0
3 years ago
The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales $ 11,100 Current as
Pachacha [2.7K]

Answer:

EXTERNAL FINANCING NEEDED IS $383.736

Explanation:

For calculating the external financing , we first have to take out what the sales , cost , asset , liability will be when the sales of the company increases by 17%, so now we have to calculate all the values -

   SALES    = $11,100 X 1.17  ( multiplying by 17% because of increase in sale)

                  = $12,987  

   COST = $7900 X 1.17  (multiplying by 17%)

              = $9243

INCOME BEFORE TAX = SALES - COST

                                       = $12,987 - $9243

                                       = $3744

TAXES AT 24% ON TAXABLE INCOME OF $3744

             = .24 X $3744 =$ 898.56

Now subtracting this amount from taxable income

$3744 - $898.56 = $2,845.44

Next step would be of paying dividend payout ratio from it

40% of $2,845.44 = .40 x $2845.44

= $1138.176

RETAINED EARNINGS = Taxable income - Dividend payout

                                     = $2845.44 - $1138.176

                                     = $1707.264

NOW TOTAL ASSETS WOULD BE = $15,600(5400+10200) X 1.17

                                                         = $18,252

IT IS GIVEN IN THE QUESTION THAT COST, ASSET, LIABILITY(CURRENT) ARE ALL PROPORTIONAL TO SALES.

CURRENT LIABILITY = $3300 X 1.17

                                   = $3861

TOTAL COST = LONG TERM LIABILITY + CURRENT LIABILITY

                       =$4820 + $3861

                      = $8681

TOTAL EQUITY EQUAL = $7480 + $1707.264 (RETAINED EARNINGS)

                                        = $9187.264

EXTERNAL FINANCING = ASSET - LIABILITY - EQUITY

                         = $18,252 - $8681 - $9187.264

                         =    $383.736

4 0
3 years ago
Which of the following two methods are typically used for initial screening of​ investments, rather than for​ detailed, in-depth
OLga [1]

Answer:

A. payback and accounting rate of return

Explanation:

  • The initial screen is a practice method of excluding the investments form the portfolio basis on the social environment and governance and the screening is mot applicable to the investments.
  • Such as the mutual funds and the privately co-mingled funds. A positive screening means to exclude the companies that are environmental friendly have a socially responsible business practice.
4 0
3 years ago
Other questions:
  • Burns Company reported $1,161.405 million in net income in 2021. On January 1, 2021, the company had 409 million shares of commo
    11·1 answer
  • Suppose the price of Twinkies is reduced from $1.45 to $1.25 and, as a result, the quantity of Twinkies demanded increases from
    10·2 answers
  • The journal entry to record a return of merchandise purchased on account under a periodic inventory system would be
    6·1 answer
  • Eliminating the Drafty product line would eliminate $45,000 of direct fixed costs. The $78,000 of common fixed costs would be re
    10·1 answer
  • The stand minus −alone cost allocation method ranks the individual users of a cost object in order of users most responsible for
    14·1 answer
  • A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the lab
    10·1 answer
  • Which accurately describes the terms of this mortgage? Check all that apply.
    8·1 answer
  • How much can Jeff claim as an itemized deduction for taxes paid if he paid the following in 2019: (state income tax withheld of
    13·1 answer
  • Which of these boxes of cereal has the LOWEST unit price?
    8·1 answer
  • Barney owns a lot valued at $84,000. he purchases an adjoining lot for $66,000 and merges the two properties. the current apprai
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!