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Naddika [18.5K]
3 years ago
6

In January of 2018, the Phillips Company purchased a patent at a cost of $100,000. In addition, $10,000 in legal fees were paid

to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for intangible assets. In 2020, Phillips spent $25,000 in legal fees for an unsuccessful defense of the patent. The amount charged to income (expense and loss) in 2018 related to the patent should be:
Business
1 answer:
soldi70 [24.7K]3 years ago
5 0

Answer:

The answer is: $113,000

Explanation:

By 2020, Phillips Company had already amortized $22,000 of the patent expenses (2 years x [10% x ($100,000 + $10,000)]). Since it lost its patent defense in 2020, it will now have to write off $113,000 ($88,000 pending amortization + $25,000 in legal fees) for the adjustment of its 2018 income.

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Answer:

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Explanation:

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Interest payment = semi-annually on December 31 and July 1

December 31, 2018:

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Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives
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Answer:

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Explanation:

Giving the following information:

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3 years ago
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Answer:

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Data provided

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2 years ago
A business will usually choose to produce a new product inan existing facility if the cost is less that the cost of building a n
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Answer:

E) existing factory has enough capacity to handle demand for the new products as well as the existing products.

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