1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Which motivation theory might explain one’s need for financial security?
Ymorist [56]
Which motivation theory might explain one’s need for financial security? I would say humanistic theory of motivation because I would consider it a basic human right to have financial security.
7 0
3 years ago
Olivia asks several real estate agents to help her sell her house. A buyer is found. At the closing, no agent receives a commiss
STALIN [3.7K]

Answer: Open Listing

Explanation: The seller sold the real estate herself therefore she did not have to pay a commission.

8 0
3 years ago
This chapter discusses many types of costs: explicit costs, implicit costs, total cost, average fixed cost, average variable cos
In-s [12.5K]

Explanation:

To find - Fill in the type of cost that best completes each sentence.

Profits equal total revenue minus ______________ .

The term __________ refers to costs that involve direct monetary payment by the firm.

_____________ is falling when marginal cost is below it and rising when marginal cost is above it.

The cost of producing an extra unit of output is the _____________ .

__________ is always falling as the quantity of output increases.

The opportunity cost of running a business that does not involve cash outflow is a(an) ____________ .

Proof -

Profits equal total revenue minus TOTAL COST

.

The term EXPLICIT refers to costs that involve direct monetary payment by the firm.

AVERAGE VARIABLE COST is falling when marginal cost is below it and rising when marginal cost is above it.

The cost of producing an extra unit of output is the MARGINAL COST.

AVERAGE FIXED COST is always falling as the quantity of output increases.

The opportunity cost of running a business that does not involve cash outflow is a(an) IMPLICIT COST.

5 0
3 years ago
The liabilities of Oriole Company are $117,000 and the owner’s equity is $227,000. What is the amount of Oriole Company’s total
o-na [289]

Answer:

$344,000

Explanation:

Assets can be calculated by applying the accounting equations.  In the accounting equations

Assets = Liabilities + Equity

In this case, liabilities are  $117,000 and Equity is $227,000.

Therefore,

Assets = $117,000 + $227,000

Assets = $344,000

6 0
3 years ago
Mary will receive $12,000 per year for the next 10 years as royalty for her work on a finance book. What is the present value of
butalik [34]

Answer:

$67,800

Explanation:

We can use annuity formula to find the present value of the royalties received for the upcoming ten years.

The annuity formula used here is attached with the answer.

The first step would be finding annuity factor at 12%.

So

Annuity Factor = (1-(1+r)^-n) / r

By putting values, we have:

Annuity Factor = (1 - (0.322)) / 0.12 = 5.65

Present Value = Annual Cash flow * Annuity Factor

PV = $12,000 * 5.65 = $67,800

5 0
4 years ago
Other questions:
  • Consider a hypothetical closed economy in which households spend $0.60 of each additional dollar they earn and save the remainin
    6·1 answer
  • John owes Kathleen​ $5,000. In​ January, Kathleen assigns her right to collect the money to Jennifer. In​ March, Kathleen assign
    9·2 answers
  • Assume the position of a consultant hired to assess the approach toward HR management taken by a client organization. What facto
    15·1 answer
  • Internationally diversified firms: a. are more likely to produce below-average returns for investors in the long run. b. may nee
    11·1 answer
  • Explain the Taylor Rule
    6·1 answer
  • On February 1, 2021, a company loans one of its employees $29,000 and accepts a ten-month, 8% note receivable. Calculate the amo
    12·1 answer
  • Write any four advantages of living in a community<br><br>​
    8·1 answer
  • 4.37.-On January 1st, Frank bought a used car for $72,000 and agreed to pay it as follows: ¼ down payment; the balance to be pai
    10·1 answer
  • Net sales$688,500 $450,000 Cost of goods sold 337,364 133,200 Determine the 2016 and 2017 trend percents for net sales using 201
    12·1 answer
  • Résumés should include the following:
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!