Answer:
<em>Licensing </em>
Explanation:
Licensing <em>is a business agreement whereby one company gives authorization to another company to produce its product for a defined fee.</em>
Licensing allows you to immediately tap current manufacturing, marketing and distribution systems which may have been built by other companies for decades.
Answer:
Journal Entry
Explanation:
Cash Dr, $63,360
Loss on sale receivable Dr, $6,640
Receivable from factor Dr, $6,200
To resource liability $4,200
To Accounts receivable $72,000
(Being transfer on the books of Mountain High is recorded)
Working Note :-
2% × $72,000 = $1,440
Cash = ($72,000 × 0.90) - ($72,000 × 0.02)
= $64,800 - $1,440
= $63,360
Loss on sale receivable = ($4,200 + $72,000) - ($63,360 + $6,200)
= $76,200 - $69,560
= $6,640
You have to pay back interest, and the later you pay, the more you owe!<span />
Answer:
$11,200
Explanation:
As not mentioned in the account. It is Assumed that the Larry and Bird are related parties and Bird made a sale at a transfer price of $40,000 with $24,000 cost of inventory.
Bird can only recognize the equity up to the ratio of inventory used or sold by the related party.
As 30% was not consumed then consumption will be 70%, so 70% of the income is realized and it will be recorded.
Equity Income = $40,000 - $24,000 = $16,000
Realized Equity income = $16,000 x 70% = $11,200
* There is some ambiguity in the question given.
