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Vedmedyk [2.9K]
3 years ago
7

In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocat

ion included the following items: $6 million, patent; $4 million, trademark considered to have an indefinite useful life; and $6 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items?
Business
1 answer:
ExtremeBDS [4]3 years ago
8 0

Explanation:

Because trademarks have an unlimited effective life of 4 million dollars, the regulation is not valid.

Goodwill and immaterial properties are not amortized but are checked for damage annually for infinite useful lives.

The copyright worth $6 million for five years is the only inviolable thing you can amortize.

The gross amortization cost in relation to these things in the income statement of Burger Mania for the first year ending December 31 would amount to $800,000.

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Since your first birthday, your grandparents have been depositing $1,000 into a savings account on every one of your birthdays.
irina1246 [14]

Answer:

$25,650

Explanation:

The formula for calculating the future value of an annuity is:

F = P x ([1 + I]^N - 1 ) / I

where:

  • P = payment amount = $1,000
  • I = interest rate = 4%
  • N = number of payments = 18

F = $1,000 x ([1 + 4%]^18 - 1 ) / 4% = $1,000 x (1.04^18 - 1 ) / 4% = $1,000 x (2.026 - 1 ) / 4% =  $1,000 x 1.026 / 4% = $25,650

4 0
3 years ago
A July sales forecast projects that 5,000 units are going to be sold at a price of $12.50 per unit. The management forecasts 2%
Pavlova-9 [17]

Answer:

P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

1.02*5000 units= 5100 units

And the Total August sales would be given by:

P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars

And the correct answer for this case would be:

$63,750

Explanation:

For this case the original number of sales for this case is 5000 units and the unitary price is given by 12.5 \frac{dollars}{unit}

And the total sales for the original case would be given by:

P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

1.02*5000 units= 5100 units

And the Total August sales would be given by:

P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars

And the correct answer for this case would be:

$63,750

7 0
3 years ago
Jasper Furnishings has $225 million in sales. The company expects that its sales will increase 10% this year. Jasper's CFO uses
lions [1.4K]

Answer:

$75,637.5

Explanation:

Sales = $225 million

Growth in sales = 10%

Inventory = $15 + 0.245(Sales)

(sales) S1 = $225,000,000 × 1.10

   = $247,500,000

Inventory = $15 + 0.245 ($247.5)

                = $15 + 60.6375

                = 75.6375

Since this relationship is expressed in thousands of dollars,

Inventory = $75.6375 x $1000

                = $75,637.5

7 0
3 years ago
On January 1, Ramirez Supply leased a car for a four-year period, at which time possession of the car will revert back to the le
ohaa [14]

Based on the amount that Ramirez guaranteed the lessor and the estimated residual value, the amount to be added to the right-of-use asset is $1,434.33.

<h3>What amount should be added to the right-of-use asset?</h3>

This would be the present value of the difference between the guaranteed amount and the estimated residual value.

= 42,300 - 40,200

= $2,100

Present value:

= 2,100 / (1 + 10%)⁴

= 1,434.328

= $1,434.33

In conclusion, the right-of-use asset amount to be added is $1,434.33.

Find out more on present value at brainly.com/question/20813161.

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5 0
2 years ago
Explain why a $ 50,000 increase in inventory during the year must be included in developing cash flows from operating activities
Simora [160]

Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods. The $50,000 increase in inventory must be used in the statement of cash flow calculations because it increases the outflow of cash (all else equal).

An increase in the company's inventory indicates that the company has purchased more goods than it has sold. It means an additional cash outflow as cash must be used to purchase additional consumables. Cash outflows have a negative or unfavorable impact on a company's cash position.

Therefore, as inventories increase, the company will have to spend money to buy them (cash outflow). On the other hand, the decrease in inventory will be cash in for the amount sold. We arrive at the following rule: Inventory Increase => Cash Outflow (Negative)

An indirect way to create a cash flow statement is the change in the amount of cash due to operating activities in the account on the balance sheet. and adjust the net profit for the year.

Learn more about inventory here;

brainly.com/question/24868116

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5 0
2 years ago
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