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nasty-shy [4]
4 years ago
12

On January 2, 2016, Rafa Company purchased a franchise with a useful life of 10 years for $50,000. An additional franchise fee o

f 3% of franchise operating revenues also must be paid each year to the franchisor. Revenues during 2016 totaled $400,000. In its December 31, 2016, balance sheet, what net amount should Rafa report as an intangible asset-franchise? Multiple Choice $33,000 $43,800 $45,000 $50,000
Business
1 answer:
Zielflug [23.3K]4 years ago
3 0

Answer:

$45,000

Explanation:

Value of Franchise will be amortized on its useful life.

Value of Franchise = $50,000

Useful life = 10 years

Amortization as on December 31, 2016 = 50000/10 = $5000

Revenue and Franchise operating cost have nothing to do with the value of Intangible asset and amortization. All of these are operating entering which will be dealt in the income statement instead account for as value of Intangible asset.

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At the end of WWII, the US took charge to reshape Japan’s government and economy. The Allies punished Japan for its past militar
VARVARA [1.3K]

Answer:

Inclusive economic institutions

Explanation:

Daron Acemoglu explains on his book titled 'Why Nations Fail' the roots and causes of economic development. For this author the most important component of progress is the stablishment of economic institutions which permits the integration and cooperation of society, defined by inslusive economic instituions instead of extractive ones.

In this particular case, the US autorities implemented a free market economy which correspond to an inclusive institution and replacing the old economy.

6 0
3 years ago
Which of the following degrees is a minimum requirement to become a lawyer? Select all that apply.(2)
Helen [10]

Answer: the answer is c. bachelors degrees and d. juris doctor degree

Explanation: These are the perfect degrees to be capable of becoming a lawyer. It makes perfectly good since to have these degrees ready and setting before you go into law firm.. I hope my answer helps you

4 0
3 years ago
Read 2 more answers
"Snow Inc. has just completed development of a new cell phone. The new product is expected to produce annual revenues of $1,400,
8090 [49]

Answer:

Explanation:

Attached is a workbook with a schedule of Projected annual cashflow for Snow Inc.. The annual cashflow entries are projected using a rate of 8%. For instance, in the first year, our cashflows are not subject to any projection. But in the second year, the annual revenue of $1400000 is projected using the required rate of return.

Revenue (second year) = 1400000[1+0.08]^1

= 1400000 × 1.08

Revenue = $1,512,000

This technique was used to project the value for all cashflow elements for the rest of the years in consideration.

Download xls
4 0
3 years ago
What is product recall?
AlekseyPX

Answer:

Below

Explanation:

a product recall from a manufacturer to return a product after the discovery of safety issues or product defects that might endanger the consumer or put the makers / seller at risk at legal action.

6 0
3 years ago
An 85-year old risk averse investor is not happy about the minimal return she is earning on her current investments. She is stre
Ilia_Sergeevich [38]

Answer:

B. Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds

Explanation:

First of all, since the investor is risk averse and cannot afford to lose money on any risky investment, she should change the mix of her investment portfolio but without increasing risks. Corporate bonds that are AAA-rated carry a very low risk and pay a little higher than money market funds. So a small decrease in money market fund assets and an increase in AAA-rated bonds should yield a slightly higher return.

Investing in equities would be too risky and US Treasuries pay even less interests than money market funds.

6 0
4 years ago
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