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Tanzania [10]
3 years ago
11

On August 1, Year 1, SuperCool Software (SCS) began developing a software program to allow individuals to customize their invest

ment portfolios. Technological feasibility was established on January 31st of year 2, and the program was available for release on March 31, year 2. Development costs were incurred as follows:August 1 through December 31, Year 1 $ 4,000,000January 1 through January 31, Year 2 600,000February 1 through March 31, Year 2 900,000SCS expects a useful life of five years for the software and total revenues of $10,000,000 during that time. During Year 2, SCS recognized $2,000,000 in revenue, included in the $10,000,000 total revenue estimate.Calculate the required amortization for Year 2 (Hint: calculate using both methods, choose the greater number)
Business
1 answer:
Bess [88]3 years ago
6 0

Answer:

$180,000

Explanation:

Calculation to determine the required amortization for Year 2

(1)Using Percentage-of-revenue method

Percentage-of-revenue method=($2,000,000/$10,000,000)*$900,000

Percentage-of-revenue method= 20% *$900,000

Percentage-of-revenue method= $180,000

(2) Using Straight-line method

Straight-line method=$900,000 × 1/5 × 9/12

Straight-line method= $135,000

Therefore based on the above calculation the required amortization for Year 2 will be $180,000 using The percentage-of-revenue method reason been that the method help to produces higher amortization of the amount of $180,000.

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A company had the following treasury-stock related account balances: Treasury Stock - $250,000Paid-in Capital from Treasury Stoc
Juliette [100K]

Answer:

the paid-in capital from treasury stock transactions would be reduced by $20000

Explanation:

Treasury stock is the stock that is bought by the stakeholders of the issuing company.The treasury stock does not receive dividends. Paid in capital are money being paid by investors in exchange for shares.

If the company resells Treasury Stock that originally cost $60,000 for $40,000.

The paid-in capital from treasury stock transactions to be reduced = $60,000 - $40,000 = $20000

6 0
4 years ago
Mary owns a floral and gift shop valued at $150,000. If she keeps the shop open 5 days a week, EBIT is $75,000. If the shop rema
shtirl [24]

Answer:

Check the explanation

Explanation:

If Mary issues stock, she would not be bearing any interest expense for the money she raised. since all the money she raised is through stock. Therefore, Cash flow for the year would be

$69000: [1592,000 *5150,000/ (V50,000+550,000)]

This is the cash flow for the year to be for Mary if she issues stock and remains open 6 days a week

5 0
3 years ago
pet products inc. manufactures two products, cat bowls and dog bowls, from a joint process. cat bowls are allocated 50% of the t
Rufina [12.5K]

The difference in operating income between processing the cat bowls further versus selling them off at the split-off point is -$1,920.

<h3>What is operating income?</h3>

Operating income is the adjusted revenue of a business after all operating costs and depreciation have been taken into account. The charges incurred to maintain the operation of the business are known as operating expenses.

Calculating the operational income difference:

After additional processing, sales income (1000*14) 14000

At the split-off point, sales revenue (1000 x 11) 11000

3000 in additional revenue

Cost Incremental -4920

Increased revenue (loss) -1920

Operating income (loss) difference = -1920

The ability of your company to make money from its operational activities is demonstrated by operating income. The operating income figure is frequently used by business owners to assess the operational success of their enterprise. Potential creditors and investors might be interested in your company's operating income.

To learn more about operating income refer to:

brainly.com/question/11110287

#SPJ4

8 0
1 year ago
Customers tell Heidi that they would feel more comfortable leaving their dogs at Camp Bow Wow if at least some of the camp couns
Dahasolnce [82]

Answer:

A and C

Explanation:

According to my research on studies conducted by various sociologists, I can say that based on the information provided within the question this situation involves the internal environment and employees. This is because an Internal Environment is refers to the culture, members (including employees), events and factors within an organization. And since Heidi would not leave her dogs at Camp Bow Wow because none of the employees are accredited veterinary technicians, we can say that the answer is internal environment and employees.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
4 years ago
Read 2 more answers
What effect do rising input costs have on the price of a good.
Genrish500 [490]

Answer:

Explanation:

Inputs are the factors required for production to take place. They may include labor and raw materials. In economics, inputs are the four factors of production that include land, labor, entrepreneurship, and capital.

The final cost of a product is dependent on the costs of production. The cost of production is an aggregation of the cost of each input used in the production. For a company to stay in operation, it must meet all its production costs. These costs are spread to each unit produced.  A high production cost will result in an expensive product. Should the cost of any of the input increase, then the overall cost of the products will rise.

4 0
3 years ago
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