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Temka [501]
3 years ago
14

Cullumber purchased a patent from Vania Co. for $1,230,000 on January 1, 2018. The patent is being amortized over its remaining

legal life of 10 years, expiring on January 1, 2028. During 2020, Cullumber determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020
Business
1 answer:
victus00 [196]3 years ago
4 0

Answer: $738,000

Explanation:

The amount they should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 goes thus:

The amortization for 2018 and 2019 will be:

= $1,230,000 × 2/10

= $246,000

Then, the carrying value of patent in the beginning of 2020 will be:

= $1,230,000 - $246,000

= $984,000

It should be noted that the remaining life will be:

= 6 years - 2 years

= 4 years

2020 Amortization will then be:

= $984000/4 =

$246000

Accumulated Amortization will be:

= $246,000 + $246,000

= $492,000

Therefore, the amount reported in patents will be as at December 31, 2020 will be:

= $1,230,000 - $492,000

= $738,000

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I would help you but I can’t understand this
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The statement reflecting changes in permanently restricted, temporarily restricted and unrestricted net assets for a private sec
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Answer:

Statement of Net Assets or statement of financial position.

Explanation:

Statement of net assets shows the permanently restricted, temporarily restricted, and unrestricted funds. This is represented into he equity section.

A template for the creation of statement of financial position is provided by the IRS form 990.

Unrestricted assets are donations to the organisation that can be used for general expenses.

Temporarily restricted assets are set aside for a particular project by donors

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3 years ago
An economy has $10 trillion in consumption, $2.5 trillion in investment, $3 trillion in government purchases, $1 trillion in exp
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Answer:

$15 trillions

Explanation:

The computation of the GDP is shown below:

GDP = Consumption + Investment + Government purchase + Net exports

where,  

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Government purchase = $3 trillions

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= -$0.5 trillion

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U. s. treasury securities are considered risk-free because they have minimal if any, default risk.

Given that the U.S. government stands behind them with its full faith and credit, Treasury securities are among the safest investments. According to the maturity period, Treasury securities are separated into three major groups:

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You can buy any of these Treasury securities directly from the US government, through a bank, or through a broker. Despite being low-risk, treasuries do have some risks, such as being affected by inflation and interest rate changes. Treasuries have low returns because they are a secure investment. Federal taxes must be paid on interest received on Treasury securities.

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Hence from the above we can conclude that the correct option is B.

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