Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2021, for $4.1 million. The patent will b
e used for five years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $180,000 at the end of five years. Compute Granite's patent amortization for 2021, assuming the straight-line method is used.
real interest rate = nominal interest rate - increase in GDP deflator (inflation rate) = 5% - 2% = 3%
The nominal interest rate is the interest rate earned or charged without considering the effects of inflation. The real interest rate adjusts the nominal interest rate against the year's inflation rate.
Explanation: Brainstorming is a group creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members. It is the basic technique for developing ideas and getting people to think up new concepts and solutions to a problem.
Brainstorming also triggers creativity and great idea generation.
1. On the statement of cash flow record the sale of the asset under the investment section.
2. -$16,000
Explanation:
In Cash flow Statements every asset purchases and sales are viewed as investments, so you record asset sales in the investment section of the cash flow.
Therefore the exact value of the sales is recorded.
Earned Value Management (<em>EVM</em>) is a helpful method that allows high-rank executives to measure the performance of their projects. It analyses the difference between the work planned in the project with the work performed. The three pillars of EVM are <em>scope, time, </em>and <em>cost information</em>. The scoping process implies a Work Breakdown Structure (<em>WBS</em>) where the initial plan is broken into micro levels for better analysis.