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AnnZ [28]
3 years ago
7

Beerbo purchased a patent from Mitter Lite Co. for $1,000,000 on January 1, 2018. At that time, the patent's useful life was 10

years, expiring on December 31, 2027. In early 2020, Beerbo determined that the economic benefits of the patent would not last longer than 4 more years (6 years from the date of acquisition). Given the revised useful life, Beerbo expects the useful life of the patent to expire on December 31, . (Input year; e.g. "2020") At the end of 2019 / beginning of 2020, what was the value / net book value of the patent in Beerbo's books
Business
1 answer:
QveST [7]3 years ago
5 0

Answer:

Given the revised useful life, Beerbo expects the useful life of the patent to expire on December 31, 2024 .

Book Value at the end of 2019 / beginning of 2020 = $666,667

Explanation:

In the Books Of Beerbo

Given

Cost of Patent= $ 1000,000

Useful Life = 10 years

In early 2020, Beerbo determined that the economic benefits of the patent would not last longer than 4 more years.

So  the useful life of the patent will expire on December 31,<u>2024.</u>

<u></u>

<u>As </u>Beerbo estimated the useful life of the patent to be 6 years instead of 10 years so amortizing the patent accordingly would given

Amortization for 1 year = Cost/ Useful life= $ 1000,000/6= $ 166666.67

Amortization for 2 years=$ 166666.67*2= $ 333,333

Book Value at the end of 2019 / beginning of 2020= Cost - Amortization=  $ 1000,000-$ 333,333= $666,667

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Answer:

June 15

Dr. Account Receivable $24,000

Cr. Service Revenue      $24,000

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Explanation:

As the Services are performed on June 15, and Great Venture has a right to received the payment against the services provided. So, the revenue is recognized and The payment for the services has not been made yet. This result in the creation of account receivable, That is expected to receive in July.

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5 0
3 years ago
The Goldfarb Company manufactures and sells toasters. Each toaster sells for $24.45 and the variable cost per unit is $16.65. Go
Tasya [4]

Answer:

$67860

Explanation:

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the formula for contribution margin is

= sales price- variable cost

= (s-v)x

putting values we get

= (24.45-16.65)\times8700

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8 0
3 years ago
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Answer:

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Explanation:

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3 years ago
Choose the portfolio from the following set that is not on the efficient frontier. Group of answer choices C: expected return of
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Answer:

Option C is correct one.

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