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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

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artcher [175]

Answer:

4.15%

Explanation:

In order to determine the annual saving we must divide the extra cost of the hybrid by the amount of years it takes to recoup our investment.

annual savings = $4,180 / 11 years = $380 per year

our initial investment = -$4,180

since we are going to use the car during 15 years, then we have 15 positive cash flows of $380

using a financial calculator or excel spreadsheet, the internal rate of return (IRR) on our investment = 4.15%

5 0
3 years ago
What two requirements of supply must someone meet to be considered a producer?
netineya [11]
The two requirements of supply that someone must meet in order to be considered a producer are the following:
1. the willingness to supply a product or service
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8 0
3 years ago
If there is an increase in market demand in a perfectly competitive market, then in the short run
katovenus [111]

Answer:

The correct answer is option d.

Explanation:

An increase in the market demand will cause the market demand curve to move to the right. This rightward shift in the demand curve will lead to an increase in the market price.

This increase in market price will cause the individual demand curves to move upwards. As the price increases, the profits earned by the firms will increase as well.

Profit to a firm is the difference between its total revenue and total cost, as the price increases, revenue will increase and cost will remain the same. This will cause profits to increase.

7 0
3 years ago
In 2019, Muhammad purchased a new computer for $16,000. The computer is used 100% for business. Muhammad did not make a $179 ele
Len [333]

Answer: His cost deduction would be $3,200

Explanation:

Without the mid-quarter convention Muhammad’s 2019 MACRS deduction would be $3,200 ($16,000 x .20). The mid-quarter convention slows down the taxpayers available cost recovery deduction.

8 0
3 years ago
The debt-to-income (DTI) ratio of a borrower is used to compare to the borrower's gross monthly income.
ArbitrLikvidat [17]

Answer:

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Explanation:

Edge

5 0
3 years ago
Read 2 more answers
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