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kotykmax [81]
3 years ago
14

On January 1, Year 1, Stiller Company paid $200,000 to obtain a patent. Stiller expected to use the patent for 5 years before it

became technologically obsolete. The remaining legal life of the patent was 8 years. Based on this information, what is the amount of amortization expense during Year 3 and the book value of the patent as of December 31, Year 3, respectively?
Business
2 answers:
NeX [460]3 years ago
8 0

Answer:

a. The amount of amortization expense during Year 3 is $40,000.

b.The book value of the patent as of December 31, Year 3 is $80,000.

Explanation:

For amortization of patient, it is done using which one is shorter between the useful life and legal life.

We therefore use the useful life in this question since it is the one that is shorter to amortize as follows:

Annual amortization expenses = $200,000 ÷ 5 = $40,000

Accumulated annual amortization for 3 years = $40,000 × 3 = $120,000

Book value of the patent in year 3 = $200,000 - $120,000 = $80,000

Therefore, the amount of amortization expense during Year 3 is $40,000 and the book value of the patent as of December 31, Year 3 is $80,000.

joja [24]3 years ago
8 0

Answer:

$40,000 and $80,000

Explanation:

Amortization expense/year=($200,000/5)=$40000/year.

Hence amortization expense for December 31,2018= $40,000

Book value as on December 31,2018=$200,000-(40000*3)=$80,000

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Market structure is determined by the Group of answer choices None of the Answers are Correct. Annual revenue, costs, and profit
nignag [31]

Market structure is determined by the number and relative size of the firms in an industry.

  • Market structure describes how different industries are categorized and distinguished based on how fiercely and in what ways they compete with one another for customers' goods and services. There are four different kinds of market structures: monopolistic competition, oligopolistic markets, perfect competition, and monopolistic markets.
  • In economics, market structure illustrates how businesses are categorized and distinguished according to the sorts of items they sell and how external circumstances and elements impact their operations. It is simpler to comprehend the peculiarities of various marketplaces when there is a clear market structure.
  • The four types of economic market structures are oligopoly, monopoly, perfect competition, and monopolistic competition. The following characteristics explain why the categories are different: In oligopoly, there are few producers, many in perfect and monopolistic competition, and one in monopoly.

Thus the correct answer is Option D.

To learn more about market structure, refer: brainly.com/question/27874368

#SPJ4

6 0
1 year ago
When is competition deemed desirable in business, when is it undesirable?​
OverLord2011 [107]
Competition is also considered the basis for capitalist or free market economies.

Competition is desirable when the price charged to individuals equals the marginal cost of production to each firm. In other words, one can say sellers charge buyers a reasonable or fair price.

Competition is undesirable when it leads to a lower output and increased costs. Competition is undesirable in business because you have to prevent new innovative ideas surviving due to firms operating with high research and development costs alongside dominant advertising. In addition fewer incentives to cut costs because of a lack of competitors.



Read more: https://www.referenceforbusiness.com/encyclopedia/Clo-Con/Competition.html#ixzz7Booeb5l4
6 0
3 years ago
A firm has the balance sheet accounts, Common Stock and Paid-in Capital in Excess of Par, with values of $40,000 and $500,000, r
Mrac [35]

Answer:

$13.50/share

Explanation:

500000/40000=12.5$

was purchased for 1$

total=1+12.5$

$13.50/share

8 0
2 years ago
Southwestern Bank offers to lend you $50,000 at a nominal rate of 6.9%, compounded monthly. The loan (principal plus interest) m
san4es73 [151]

Answer:

0.98%

Explanation:

Note: Options provided is slightly different for this question

EAR = (1+APR/m)^m - 1  

EAR = (1+0.069/12)^12 - 1

EAR = (1.00575)^12 - 1

EAR = 1.07122449517 - 1

EAR = 7.12%

Hence, higher EAR  charged by Woodburn versus the rate charged by Southwestern = (8.1% - 7.12%) = 0.98%

5 0
3 years ago
“For those brave enough to act effectively now to stabilise and protect your business and maintain liquidity, opportunity will c
irakobra [83]

Answer:

Yes it can.

Explanation:

Statement of cash flow is a financial statement that narrates the pattern and the amount of cash and its equivalent that enters and leave the a company and eventually provides the amount of liquid cash the company has . This is important as the net income declared may not necessarily means the available cash due to the impact of some non cash transaction like depreciation and gain on the disposal of assets

During this pandemic period , one recommendation on how companies can maintain liquidity is by negotiating a longer payment cycles with suppliers.As most companies have lost their customers to the pandemic and are looking for ways of retaining and attracting new customers. A company can make use of the opportunity to negotiate for a favorable payment pattern . However , the term must be reasonable  in order to avoid a bad reputation.

5 0
3 years ago
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