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aleksley [76]
3 years ago
8

In January 2016, Vega Corporation purchased a patent at a cost of $200,000. Legal and filing fees of $50,000 were paid to acquir

e the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January, 2019, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss) in 2019 related to the patent should be:
Business
1 answer:
Andreyy893 years ago
7 0

Answer:

$215,000

Explanation:

As at 2016

Cost of patent                $200,000

Legal and filing fees       $50,000

Patent                            $250,000

Yearly amortization = $250,000/10 = $25,000 (10 years)

As at 2019

Patent                                                            $250,000

Less Amortization($25,000*3 years)          ($75,000)

Book Value                                                   $175,000

Patent (Book Value)                                                                     $175,000

Add legal fees for an unsuccessful defense of the patent         $40,000

Total                                                                                                $215,000

The amount charged to income (expense and loss) in 2019 related to the patent should be $215,000.

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Explanation:

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effective daily rate=(1+annual rate)^1/365-1

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effective daily growth rate=(1+0.70)^(1/365)-1

effective daily growth rate =1.001454833 -1

effective daily growth rate=0.001455

effective daily growth rate=0.145483327  %

effective daily growth rate =0.1455%  approximately

The fact that the business is growing at this rate on daily basis is good indicator of business success which must be leveraged upon in the future in order to take the business even to greater heights.

However,the validity of the annual rate of 70% is also very important,whatever parameters used in arriving at 70% needs to be rechecked in order to be on the safe side.

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3 years ago
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Sholpan [36]

Answer:

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Additionally, a free market in tradable pollution permits simply means giving manufacturing companies and individuals the legal right to pollution of the environment. For example, ABC company is purchasing the permit of 500 units of carbon dioxide (CO2) pollution annually, this simply means it is permitted to pollute the environment by 500 units of CO2 annually.

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Answer:

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Answer:

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