Answer: $8000
Explanation:
Amortization refers to the practice whereby the cost of an intangible asset is spread over the useful life of the asset. Amortization is used to lower the book value of an intangible asset or loan over a particular period of time.
Based on the information given in the question, the amortization of the right-to-use asset for year 1 should be:
= Installment - Interest
= $14000 - $6000
= $8000
Answer:
The net income amount is $101250
The income statement is made in the explanation part.
Explanation:
<u>Income Statement</u>
$ $
Sales 950000
Less:COGS <u>(400000)</u>
Gross profit 550000
<u>Less:Expenses</u>
Selling &Marketing expenses 160000
General & Admin expenses 200000
Depreciation <u>30000 </u> <u>(390000)</u>
Operating Profit 160000
less: Interest expense <u>(25000)</u>
Earnings before tax 135000
less: Tax (at 25%) <u>(33750)</u>
Net Income <u>101250</u>
C is the answer
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Answer:
The goodwill is $1.1 million
Explanation:
In this question, first we have to compute the net asset which is shown below:
Net asset = Total asset - total liabilities
where,
Total asset = Land + building + inventory
= $1.7 million + $3.4 million + $2.2 million
= $7.3 million
And, the total liabilities = long term note payable = $1.5 million
So, the net asset would equal to
= $7.3 million - $1.5 million
= $5.8 million
Now the goodwill equal to
= Cash purchase price - net asset
= $6.8 million - $5.8 million
= $1.0 million
Answer:
30
Explanation:
Add-On Sales Goal =85% of Sales
If there were a total of 35 sales, in order to meet the goal, we would require to make an add-on sales during 85% of 35 sales.
Now:
85% of 35=0.85 X 35
=29.75
This is approximately 30.
Therefore, you would need to make 30 add-on sales to meet the goal.
