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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 On December 31, 2021, the product was permanently withdrawn from the market under governmental order because of a potential health hazard in the product.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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Sometimes employers discover evidence of employee ___ after someone has sued them for discrimination. Employers may try to use t
EastWind [94]

Answer:

The answers are,

1st Blank - a. harassment

2nd Blank - f. avoid

3rd Blank - e. limit

Explanation:

Harassment can come in many forms in a n organization, they could be sexual harassment, verbal harassment, power harassment, gender discrimination, etc. Legal actions can be taken against an employer for not enforcing necessary requirements to prevent them.

Such lawsuits cannot be avoided by the employers but through legal means they can seek to mitigate or limit the damages they have to pay to the affected employee.

5 0
3 years ago
Nonuniform Inputs, Equivalent Units Terry Linens Inc. manufactures bed and bath linens. The bath linens department sews terry cl
anyanavicka [17]

Answer:

For Material 80,000

For Conversion 72,000

Explanation:

The computation of equivalent units of production for the bath linens department for August is shown below:-

                                     <u>Materials</u>               <u>Conversion</u>  

Units completed and

transferred out              60,000                   60,000

Units in process,

August 31                      20,000                   12,000

                                                               (20,000 × 60%)

Equivalent units of

production                   80,000                   72,000

Therefore to reach out the equivalent units of production we simply added the units completed and transferred out with Units in process Aug 31 of material and conversion.

4 0
3 years ago
"The Free-Float Company, a company in the 36% tax bracket, has riskless debt in its capital structure which makes up 40% of the
Strike441 [17]

Answer:

Equity Beta = 1.1413

Explanation:

The formula to find the asset beta is

Asset Beta = Equity Beta/(1+(1-tax rate)(Debt/Equity))

We will put the values given in the question in this formula

Asset Beta = 0.8

Tax rate = 0.36

Debt = 0.40

Equity = 0.60

0.8=Equity Beta/(1+(0.64)(0.40/0.60)

0.8=Equity Beta/1+0.4266

0.8=Equity Beta/1.4266

1.4266*0.8= Equity Beta

Equity Beta = 1.1413

6 0
3 years ago
Which is a result of frequent change requests from client?
barxatty [35]

Answer:

D. project completion constraints

Explanation:

project completion constraint can be described as condition that influence the action or set of action that are involved in the completion of the project team, and this result in frequent change requests from client.

These could be time, cost and scope.

Therefore, among the given options, option D is correct.

8 0
3 years ago
Bargeron corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt.
dalvyx [7]

a.

WACC is calculated as –

WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)

WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))

WACC = 10.46%

b. After tax cost of debt is calculated as –

After tax cost of debt = (1- tax rate) X cost of debt pre-tax

After tax cost of debt = ((1- 40%)*8.1%))

After tax cost of debt = 4.86%

6 0
3 years ago
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