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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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3 years ago
Colin presents his findings in class. His topic -- stories addressing effects of white flour on a person's health – features sci
Jet001 [13]

Answer:

Analogy is defined as a comparison between two things with an aim of clarification and explanation

- (D) A firm director describes the differences between documentary and fictional films to a group of people.

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3 years ago
A _________ approach is found frequently among companies with strong engineering orientations, pharmaceutical and biomedical fir
Korvikt [17]

Answer: Option B

   

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8 0
3 years ago
You deposited​ ($1,000) in a savings account that pays 8 percent​ interest, compounded​ quarterly, planning to use it to finish
olga55 [171]

Answer:

Present value (PV) = $1,000

Interest rate (r) =8% = 0.08

Number of years (n) = 18 months = 1.5 years

No of compounding periods in a year = 4

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FV = PV(1 + r/m)nm

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inysia [295]

Answer:

Self selection.

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