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Elza [17]
3 years ago
7

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.
Business
1 answer:
Artemon [7]3 years ago
7 0

Answer:

the patent amortization expense for the year 2021 is $231,000

Explanation:

The computation of the patent amortization is shown below:

= (Acquired value of the patent - ending value) ÷ legal life

= ($4,800,000 - $180,000) ÷ 20 years

= $231,000

We simply applied the above formula so that the correct value could come

Hence, the patent amortization expense for the year 2021 is $231,000

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Which employee labor rate is typically used to produce a project budget?Select an answer:A. salariesB. billable ratesC. burdened
natulia [17]

Answer:

The correct answer is letter "A": salaries.

Explanation:

Estimating project costs of businesses allows measuring the profits and costs the organization might have during operations. That budget must include direct costs such as <em>employees' salaries</em>, materials such as supplies and equipment, and indirect costs like administrative expenditures.

6 0
4 years ago
Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any money on my financial in
Misha Larkins [42]

Answer: Opportunity cost

Explanation:

From the question, we are informed that Joe sold gold coins for $1000 that he bought a year ago for $1000 and he said that at least he didn't lose any money on my financial investment.

We are further told that his economist friend points out that in effect he did lose money, because he could have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of the coins.

This is a concept of opportunity cost. Opportunity cost is what one forgoes when one makes a different choice. The opportunity cost in this case is the bank certificate of deposit.

4 0
3 years ago
If the price elasticity of demand is 1.8 then a 30 percent decrease in the price of the good will lead to a _______ percent incr
Mkey [24]

Answer:

The answer is 54percent

Explanation:

Elasticity is a measure of how sensitive one variable is to any variable. It is expressed as the ratio of percentage changes in variables.

That is; %change in quantity demanded/%change in price.

This calculation shows how sensitive quantity demanded is to a change in price.

In the question, price elasticity of demand is 1.8

30 percent decrease in price

Therefore, the quantity demanded will increase by 30percent x 1.8

=54percent

3 0
3 years ago
When making replacement decisions, the development of relevant cash flows is complicated when compared to expansion decisions.
fgiga [73]

Answer: True

Explanation:

Decision regarding an asset replacement is usually based on both the internal rate of return and the net present value of the incremental cash flows.

Therefore, it should be noted that this brings about the complications when comparing the development of relevant cash flows to the expansion decisions.

4 0
3 years ago
Bonita industries sells two types of computer hard drives. the sales mix is 30% (q-drive) and 70% (q-drive plus). q-drive has va
podryga [215]
3300 units of q - drive.

To get the break even units of  q drive you need to get the weighted average contribution margin of the two products

To get it, simply multiply the sales mix ratio to its contribution margin per product and add the two to get the wacm.

Q-drive cm=$120-60=60*30%
Q-drive plus cm= $165-75*70%

the wacm=$81
then divide the fixed cost by the wacm

$891000 / $81=11000 units

then to get the break even units of q-drive simply multiply the sales mix ratio to the break even units

11000 units*30% =3300 units.
5 0
3 years ago
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