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Pavel [41]
3 years ago
11

January 2, 2018, Cullumber, Inc. purchased a patent for a new consumer product for $810000. At the time of purchase, the patent

was valid for 15 years; however, the patent’s useful life was estimated to be only 10 years due to the competitive nature of the product. On December 31, 2021, the product was permanently withdrawn from the market under governmental order because of a potential health hazard in the product. What amount should Cullumber charge against income during 2021, assuming amortization is recorded at the end of each year?
Business
1 answer:
marusya05 [52]3 years ago
6 0

Answer:

Cullumber, Inc.

The amount that Cullumber should charge against income during 2021 is:

= $567,000.

Explanation:

a) Data and Calculations:

Cost of a purchased patent = $810,000

Estimated useful life = 10 years

Annual amortization expense = $81,000

Accumulated amortization for 3 years = $243,000 ($81,000 * 3)

Book value of patent on December 31, 2021 = $567,000 ($810,000 - $243,000)

The remaining book value should be charged against income in 2021 because of the withdrawal of the product.

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which stage in a work-unit activity analysis focuses on the product, information, or service provided?
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<h3>What is the output phase?</h3>

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2 years ago
What are the most important information needs that a governmental annual report should fulfill for each of the following: ______
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3 years ago
Kilbuck manufacturing operates in a lean manufacturing environment. kilbuck's actual conversion costs for the month of may follo
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Kilbuck Manufacturing operates in a lean manufacturing environment. Kilbuck’s actual conversion costs for the month of May follow:
<span><span>Direct and indirect labor $150,000
</span><span>Machine depreciation $85,000
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<span>The journal entry to record April's conversion costs will include:
</span>D. A debit to Raw and In Process Inventory

</span></span></span>Raw materials of all kinds are measured at the start<span> recorded into </span>a list plus<span> account with a debit to the raw materials inventory account and a credit to the accounts </span>collectible<span> account.When raw materials </span>are<span> consumed, the accounting treatment varies, </span>betting on<span> their </span>standing<span> as direct or indirect materials.</span>
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3 years ago
Cullumber Manufacturing Company purchased 14600 switches to make 6300 units. The standard allows for 2 switches per unit. The co
earnstyle [38]

Answer:

d. $1,875 unfavorable

Explanation:

Direct material quantity variance is computed as;

= (AQ - SQ) × SP

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Direct material quantity variance

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= -1,000 × $0.80

= -1,875 unfavorable

3 0
3 years ago
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