1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Goryan [66]
3 years ago
7

On January 2, year 1, Lava, Inc. purchased a patent for a new consumer product for $90,000. At the time of purchase, the patent

was valid for fifteen years; however, the patent's useful life was estimated to be only ten years due to the competitive nature of the product. On December 31, year 4, the product was permanently withdrawn from sale under governmental order because of a potential health hazard in the product. What amount should Lava charge against income during year 4, assuming amortization is recorded at the end of each year
Business
1 answer:
Archy [21]3 years ago
4 0

Answer:

The amount Lava should charge against income during year 4 is $63,000.

Explanation:

Since amortization is assumed to be recorded at the end of each year, this can be calculated as follows:

Annual amortization expense = Cost of the patent  / Patent's estimated useful life = $90,000 / 10 = $9,000

Amortization expense recorded prior to year 4 = Annual amortization expense * 3 years =  $9,000 * 3 = $27,000

Unamortized cost of patent charge against income during year 4 = Cost of the patent - Amortization expense recorded prior to year 4 = $90,000 - $27,000 = $63,000

Therefore, the amount Lava should charge against income during year 4 is $63,000.

You might be interested in
The Statement of Net Position of South State University, a government-owned university, as of the end of its fiscal year June 30
alexandr402 [8]

Answer:

Explanation:

Base on the scenario been described in this question, we can use the following method to be solve the question below using Microsoft word we have the solution in the image attached file below

5 0
3 years ago
1. apply what you’ve learned - managing credit cards and consumerloans
krok68 [10]

Answer:

The chips do nothing to protect against online payment card fraud, which depends on account numbers and passwords rather than the physical cards. As one security expert noted, computers and mobile devices don't have card readers attached.Explanation:

The chips do nothing to protect against online payment card fraud, which depends on account numbers and passwords rather than the physical cards. As one security expert noted, computers and mobile devices don't have card readers attached.

7 0
3 years ago
The final task in designing a management information system (mis) is _____.
Gnoma [55]

The final task in designing a management information system (mis) is to provide information which is useful in decision making purposes. Management information system is computerized data base related to financial system. A management information system (mis) is a widely used for a three-resource system that is required for effective organization management.

6 0
3 years ago
According to the liquidity premium theory of the term structure of interest rates, if the one-year bond rate is expected to be 4
KatRina [158]

Answer:

Interest rate on the a three year bond =5.5%

Explanation:

one-year bond rate expected = 4%, 5%, 6% for the next three years

liquidity premium on a three year bond = 0.5%

number of years = 3

The interest rate on the a three year bond can be calculated as

= liquidity premium + ( summation of bond rates for the next three years/number of years )

= 0.5 + ( (4+5+6)/3)

= 0.5 + ( 15/3)

= 0.5 + 5  = 5.5%

4 0
3 years ago
The period before a trial takes place is called the
nadezda [96]

Answer:

The answer would be A.

Explanation:

Discovery process, finding the facts.

4 0
2 years ago
Other questions:
  • Say that Thailand has a workforce of 35,709,487 people, each of whom earns an average salary of (equivalent USD) $8,630 annually
    13·2 answers
  • Oliver Industries is evaluating the manufacturing process for one of their products. Oliver has determined that the process has
    11·1 answer
  • The collaborative approach to conflict resolution encourages trust and assertive behaviors, fosters empowerment, and works best
    6·1 answer
  • What is the name of a free-market economic system in which most of the factors of production and distribution - such as land, fa
    12·2 answers
  • A manager engaged in the management function of ____ is determining organizational goals and the means for achieving them.a. pla
    8·1 answer
  • Suppose there is a large increase in the money supply in an economy that previously had low inflation. As a consequence, aggrega
    8·1 answer
  • What branches or specializations concentrate their efforts and work on business, work and life satisfaction in psychology ?
    7·1 answer
  • 1) Imagine that we have eliminated marketing intermediaries, and you need groceries and shoes. How would you find out where the
    12·1 answer
  • AutoZone and O'Reilly are two competitors in the retail automotive parts industry.
    9·1 answer
  • Market values: Group of answer choices reflect expected selling prices given the current economic situation. are affected by the
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!