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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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madreJ [45]

Answer:

The selling price is $99

Explanation:

The selling price of the product can be computed by adding required profit margin to the unit cost of the product.The required profit margin is the 10% return on invested assets.

Total variable cost           $59*10000                =$590,000

Fixed expenses ($180,000+$60,000)               =$240,000

desired profit margin(10%*$600,000)                =$60,000

Total sales revenue                                              =$990,0000

price per unit=$990,000/10000=$99

The cost-plus approach to product pricing gives $99

3 0
3 years ago
Which of the following is part of a sustainable economy? ANSWER a) Unselected It will value and preserve ecosystem services and
elena-14-01-66 [18.8K]

Answer:

Letter e is correct. All of the listed responses are parts of a sustainable economy.

Explanation:

In a sustainable economy, people are much more aware of the preservation of nature's depleted resources, and the well-being of current and future generations, which induces companies to meet the demands of new conscious consumers by creating " green products "and the use of new technologies to reduce the negative impacts of production on the environment.

8 0
3 years ago
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the com
jekas [21]

Answer and Explanation:

The preparation of the answer sheet is presented below;

                                 <u>Product Costs </u>

<u> Cost Item                           Direct          Direct    Manufacturing   Period </u>

<u>                                         Materials       Labor    Overhead          Costs </u>

Rent on factory

equipment                                                      $11,500  

Insurance

on factory building                                  $1,780

Raw materials     $80,800

Utility costs for factory                                  $920

Supplies for general office                                              $320

Wages for

assembly line workers               $59,700

Depreciation on office equipment                                   $830  

Miscellaneous materials                        $1,470

Factory manager’s salary                        $6,200

Property taxes on factory building        $420

Advertising for helmets                                                      $14,900

Sales commissions                                                      $10,900

Depreciation on factory building               $1,640

<u>Total                                $80,800     $59,700   $23,930      $26,950  </u>

Now  cost to produce one helmet is

= Total cost to produced ÷ number of helmets produced

= ($80,800 + $59,700 + $23,930) ÷ (10,000)

= ($164,430)  ÷ (10,000)

= $16.44

5 0
3 years ago
________, which are incurred when pursuing a related-diversification strategy, are a function of the number, size, and types of
Anton [14]

coordination costs which are incurred when pursuing a related-diversification strategy, are a function of the number, size, and types of businesses that are linked to one another.

<h3>What are coordination costs?</h3>

This is the term that has to do with the type of costs that people come about through the fact that they collaborate.

Firms are made to work together so that they would be able to carry out an activity.

Read more on coordination costs here:

brainly.com/question/24940564

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5 0
2 years ago
Discount Pizza retires its 7% bonds for $68,000 before their scheduled maturity. At the time, the bonds have a face amount of $7
snow_lady [41]

Answer:

The Journal entry and their narrations for recording the bonds retirement is shown below:-

Explanation:

The Journal entry is shown below:-

Bonds payable Dr,                                 $70,000  

Loss on redemption of bonds Dr,         $3,832

($68,000 - $64,168) 

            To Bond discount amortization           $5,832

($70,000 - $64,168)

             To Cash                                               $68,000

(Being bonds retirement is recorded)

So, for recording the early retirement of the bonds we debited the bonds payable and loss on redemption of bonds and credited the bond discount amortization and cash.

6 0
2 years ago
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