Answer:
Dr Amortization Expense $3,000
Cr Patents $3,000
Explanation:
Preparation of the journal adjusting entry on December 31 to recognize the amortization.
Dec. 31
Dr Amortization Expense $3,000
Cr Patents $3,000
(To record Amortization)
Amortization=(Patent rights/Useful life)*6/12
Amortization=($36,000/6)*6/12
Amortization=$3,000
(July 1 to Dec 31 =6months)
Answer:
a differentiation advantage
Explanation:
This scenario best illustrates a differentiation advantage. This is basically when a company is able to offer a product that, despite being the same as the competitor's product, is slightly different or offers something that the competitors do not. This small difference is what attracts the customers and increases profits. In this case, Fashion Mart Corp is differentiating their product by providing a guarantee of quality, which the competitors offering similar products cannot offer.
Answer:
Net present value = $2063.1922
Explanation:
given data
initially costs = $40,500
cash flows = $34,500
final cash inflow = $12,000
required rate of return = 18.5 percent
solution
The cash flows is
Year 0 = $40500
Year 1 = $0
Year 2 = $0
Year 3 = $34500
Year 4 = $34500
Year 5 = $0
Year 6 = $12000
so Net present value will be express as
Net present value = -Initial cash outflow + Present value of future cash flows ...............1
Present value of future cash flows = (cash flow in year n) ÷ (1 + required rate of return)^t ..........................2
put here value we get
Present value =
Present value = $42563.1922
Net present value= -$40500 + $42563.1922
Net present value = $2063.1922
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