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lbvjy [14]
3 years ago
13

X Company purchased a patent on January 3, year 7 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, year 8 balance sheet?
Business
1 answer:
Setler79 [48]3 years ago
5 0

Answer:

The carrying value of the patent on X company on December 31 is $122,000

Explanation:

Computing the carrying value of the patent is as:

The total cost of the patent which will be recognized is as:

Total cost of patent = Purchased cost + Attorney value

where

Purchase cost is $145,000

Attorney cost will be divided into 2, so

Attorney cost = $15,000 / 2

= $7,500

So,

Total cost of patent = $145,000 + $7,500

Total cost of patent = $152,500

Now, amortize the patent over the useful life of patent as:

Amortize value = Patent cost / Useful life

Amortize value = $152,500 / 10

Amortize value = $15,250

But X held the patent for 2 years, so its accumulated amortization is:

Accumulated amortization = Amortize value × 2

= $15,250 × 2

Accumulated amortization  = $30,500

Now, the carrying value will be:

Carrying value = Total cost of patent - Accumulated depreciation

Carrying value = $152,500 -$30,500

Carrying value = $122,000

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Mr. Jacob, who is terminally ill, writes a will transferring all his assets to his daughter Silvia, in the event of his death. T
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Answer:

Invalid

Explanation:

Since it is stated in the will, that upon his death should the assets be transferred, it means that Silvia doesn't get anything until Mr Jacob ceases to be alive.

With the new development as regards Mr Jacob living for 6 more months before dying, Silvia has no assets yet and as such cannot transfer anything to Jacob Jnr.

Cheers

8 0
3 years ago
Parents of young children have been known to drive out of their way so their kids will not see McDonald's Golden Arches and plea
Pavel [41]

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know what the Golden Arches brand symbol means.

7 0
3 years ago
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Denver Corporation purchased a patent for $405,000 on September 1, 2016. It had a useful life of 10 years. On January 1, 2018, D
natita [175]

Answer:

amount that should be reported for patent amortization expense for 2018 will be $90000.27

Explanation:

given data

purchased patent = $405,000

useful life = 10 years

spent = $99,000

remaining useful life = 5 years

solution

first we get here amortization from September 1, 2016 - January 1, 2018 that is

September 1 - december 31 = \frac{4}{12}  = 0.333333

amortization = (1 + 0.333333) × (405000 ÷ 10)

amortization = $53998.65

and

now we get remaining value before defence

remaining value = $405,000 - $53998.65

remaining value = $351001.35

and

now we get here amount to be reported for patent amortization expense for 2018

amount = ( $351001.35 + $99,000 ) ÷ 5

amount = $90000.27

so amount that should be reported for patent amortization expense for 2018 will be $90000.27

7 0
3 years ago
If ballard company reported assets of $500 and liabilities of $200, ballard's stockholders' equity equals:_____.
MatroZZZ [7]

If Ballard company reported assets of $500 and liabilities of $200, Ballard's stockholders' equity equals <u>$300</u>.

Liability is a time period in accounting that is used to explain any type of monetary duty that a commercial enterprise has to pay at the cease of an accounting period to someone or a commercial enterprise. Liabilities are settled with the aid of shifting economic blessings which include cash, items, or services.

Liabilities are any money owed to your enterprise, whether or not it's financial institution loans, mortgages, unpaid bills, IOUs, or some other amount of money that you owe someone else. if you've promised to pay a person an amount of cash within the future and have not paid them but, that is a liability.

Learn more about Liabilities here: brainly.com/question/17090843

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4 0
2 years ago
Determining opportunity cost juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. three stores
raketka [301]

Answer:

Juanita should purchase the skirt at her local store because the total economic cost will be lowest

Explanation:

three options:

  • local store 15 minutes away and a price of $104
  • across town 30 minutes away and a price of $88
  • neighboring city 1 hour away and a price of $63

Juanita makes $42 per hour at her work, and her purchase decision includes the opportunity cost of lost wages:

total economic cost:

  • local store = $104 + [1/4 hours x 2 (round trip) x $42] = $125
  • across town = $88 + [1/2 hours x 2 (round trip) x $42] = $130
  • neighboring city = $63 + [1 hour x 2 (round trip) x $42] = $147

Juanita should purchase the skirt at her local store because the total economic cost will be lowest ($125)

5 0
3 years ago
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