Answer:
$1,400,000 per year
Explanation:
DATA
Patent = 7 million with 5years useful life
Trademark = 5 million with an indefinite life
Goodwill = 9million
Amortization =?
Solution
Amortization of patent = Patent Value/ Useful life
Amortization of patent = $7,000,000/5
Amortization of patent = $1,400,000 per year
NOTE: Trademark and goodwill will not be amortized as they have an indefinite useful life. Both Intangible assets will be tested for impairment instead.
Answer:
Present Value= $11,523.99
Explanation:
Giving the following information:
Oven looks at his account and notices that if the current monthly interest rate stays constant he is expected to have $45,000 in 6 years and $89,000 in 9 years.
First, we need to calculate the interest rate compounded monthly using a variation of the future value formula:
FV= PV*(1+i)^n
Isolating i:
i= [(FV/PV)^(1/n)] - 1
FV= 89,000
PV= 45,000
n= 3*12= 36
i= [(89,000/45,000)^(1/36)]-1= 0.0191
i= 0.0191*100= 1.91% compunded monthly
Now, we can calculate the present value:
PV= FV/(1+i)^n
n= 6*12= 72
i= 0.0191
PV= 45,000
PV= 45,000/(1.0191^72)
PV= 11,523.99
Answer:
class A stocks
Explanation:
in 5 years, class A stock will be worth = $30 x (1 + 6%)⁵ = $40.15
in 5 years, class B stock will be worth = $20 x (1 + 12%)⁵ = $35.25
now we need to determine the present value if each stock:
class A stock present value = $40.15 / (1 + 8%)⁵ = $27.33
class B stock present value = $35.25 / (1 + 8%)⁵ = $23.99
since the present value of class A stock is higher, then the engineers should select that type of stocks.
Answer:
D) The recording label should expand the production and distribution of RG 2RG2's first CD.
Explanation:
According to the law of supply and demand, since the customers are willing to pay a price higher than equilibrium price, that means that their is a shortage of the product or service and that the supply should increase in order to get the price back to equilibrium price.
The answer is A)an increase in owner's equity