All categories

3 years ago

Bluestone Company had three intangible assets at the end of the current year:

Business

1 answer:

adoni [48]3 years ago

8 0

Answer and Explanation:

The computation is shown below:

1) Calculation of the acquisition cost is

Patent = $4,000

Trademark = $210,000 + $8,500 = $218,500

Licensing Rights = $80,000

2) Computation the amortization expense is

Patent = $4,000 ÷ 10 = $400

Trademark = $218,500 ÷ 10 = $21,850

Here we assume the indefinite life of 10 years

Licensing Rights = $80,000 ÷ 5 = $16,000

Income statement:

Amortization expense $38,250 ($400 + $21,850 + $16,000)

Balance sheet at year end december:

Fixed assets

Intangibles

Patent $3600 ($4,000 - $400)

Trademark $196,650 ($218,500 - $21,850)

Licensing Rights $64,000 ($80,000 - $64,000)

You might be interested in

Business taxes increase. what is the impact on aggregate expenditures and income?

gulaghasi [49]

If corporate tax increases then businesses would make up for the loss of profit due to this raise in taxes by charging consumers a higher price, therefore reducing Aggregate expenditure as fewer people buy the product at the higher price, probably because some would rather buy cheaper imports or because some cannot afford it at all now due to the higher price.

Another thing the business might do to make up for the loss in profit due to the raise in taxes is they might lay off some employees thereby making those fired employees incomes fall to zero, they may also reduce the remaining employees wages or salaries so that business costs fall and a good profit level is reached for the business.

4 0

3 years ago

What is the difference between negotiation and debate

ratelena [41]

Answer:

A negotiation is usually over goods, salary, where you want to go on vacation and is aimed to come to a compromise or agreement.

A debate, is a formal discussion about the pros and cons of a certain topic where opposing views are expressed.

Explanation:

4 0

4 years ago

A cement manufacturer has supplied the following data: Tons of cement produced and sold 225,000 Sales revenue $1,035,000 Variabl

sergij07 [2.7K]

Answer: $2.6 per unit.

Explanation:

Given that,

Tons of cement produced and sold = 225,000

Sales revenue = $1,035,000

Variable manufacturing expense = $421,000

Fixed manufacturing expense = $280,000

Variable selling and administrative expense = $29,000

Fixed selling and administrative expense = $220,000

Net operating income = $85,000

Sales price per unit:

= $\frac{Sales\ revenue}{total\ cement\ produced\ and\ sold}$

= $\frac{1,035,000}{225,000}$

= $4.6 per unit

Variable cost per unit:

= $\frac{Variable\ manufacturing\ expense\ + Variable\ selling\ and\ administrative\ expense}{total\ cement\ produced\ and\ sold}$

= $\frac{421,000 + 29,000}{225,000}$

= $2 per unit

Contribution margin = Sales price per unit - Variable cost per unit

= $4.6 - $2

= $2.6 per unit

4 0

3 years ago

Superior efficiency, quality, innovation, and responsiveness to customers are the four building blocks of?

Margarita [4]

Superior efficiency, quality, innovation, and responsiveness to customers are the four building blocks of competitive advantage.

<h3>What is competitive advantage?</h3>

This is the term that is used to refer to the advantage that people would have over their rivals in a given economy. This tells us of the way that the person would be able to provide the services and the goods that their consumers needs in a way that the consumers would have preference for them.

Hence we can say that the Superior efficiency, quality, innovation, and responsiveness to customers are the four building blocks of competitive advantage.

Read more on competitive advantage here: brainly.com/question/14030554

#SPJ1

7 0

2 years ago

The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5: Direct materials placed into pr

ch4aika [34]

Answer:

Total cost assigned to Job XY5:

Direct material cost 4,000

Direct labour cost (50 hrs x $15 x 50 units) 37,500

Overhead applied (50 hrs x $4 x 50 units) 10,000

Total cost of the job 51,500

Overhead absorption rate

= <u>Budgeted overhead</u>

Budgeted direct labour hours

=<u> $80,000</u>

20,000 hrs

= $4 per direct labour hour

Explanation:

The total cost of the job is the aggregate of direct material cost, direct labour cost and overhead. Overhead is absorbed based on direct labour hours. We need to calculate overhead absorption rate by dividing the budgeted overhead by budgeted direct labour hours. The overhead absorption rate is used to multiply the direct labour hours of the job in order to obtain the overhead applied to the job.

5 0

4 years ago