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3 years ago

Fixed assets. A a building is one example. B spreading costs over time

Business

2 answers:

Gre4nikov [31]3 years ago

8 0

A a building is one example!

Naya [18.7K]3 years ago

6 0

Answer:

A a building is one example

Explanation:

Assets are items that have value and is used by a business to generate profit.

There are two types of assets: the current assets and fixed assets.

Current assets are those that can be used or consumed within a year. They include cash, accounts receivable, marketable securities, and prepaid expenses.

Fixed assets are assets that are used by a business for a long period of time.

They can be tangible such as buildings, equipment, and land.

They can also be intangible for example copyright, patents, and trademarks.

In this instance a building is an example of a fixed asset.

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Kingbird Industries had one patent recorded on its books as of January 1, 2020. This patent had a book value of $249,600 and a r

dimulka [17.4K]

Answer:

The amount patent(s) should be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents, is $32,300.

Explanation:

This can be calculated as follows:

Patent book value = $249,600

Remaining useful years January 1, 2020 = 8

Remaining useful months of the patents from January 1, 2020 = Remaining useful years January 1, 2020 * 12 8 * 12 = 96

Monthly Patent book value = Patent book value / Remaining useful months = $249,600 = $2,600

Patent book value amortized from January 1, 2020 to December 1, 2020 = Monthly Patent book value * 12 = $2,600 * 12 = $31,200

Legal fee incurred = $93,500

Number of months from January 1, 2020 to December 1, 2020 = 11

Relevant months of legal fee incurred starting from December 1, 2020 = Remaining useful months of the patents from January 1, 2020 - Number of months from January 1, 2020 to December 1, 2020 = 96 - 11 = 85

Monthly legal fee = Legal fee incurred / Relevant months of legal fee incurred starting from December 1, 2020 = $93,500 / 85 = $1,100

Amount to report = Patent book value amortized from January 1, 2020 to December 1, 2020 + Monthly legal fee for December 1, 2020 only = $31,200 + $1,100 = $32,300

Therefore, the amount patent(s) should be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents, is $32,300.

3 0

2 years ago

Kelly's Corner Bakery purchased a lot in Oil City six years ago at a cost of $98,700. Today, that lot has a market value of $128

a_sh-v [17]

Answer:

The $623,100 is the amount which should be used as the initial cash flow for this project

Explanation:

The computation of the initial cash flow is shown below:

= Estimated cost of a new facility on the site + market value of a lot

= $494,200 + $128,900

= $623,100

The asset value should be recorded in the market value so we took the estimated cost and the market value in the calculation part.

The other cost which is given in the question is irrelevant. Thus, it is not considered in the computation part.

4 0

3 years ago

One reason to buy a home instead of rent a home is:

Effectus [21]

Less money up front equals it to be better than renting an appartment

3 0

3 years ago

Read 2 more answers

A study by the National Bureau of Economic Research (NBER) examined the responsiveness of consumers to changes in gasoline price

Y_Kistochka [10]

Answer:

Gasoline consumption will decrease by a small amount.

Explanation:

A coefficient of elasticity of less than one indicates that demand is inelastic.

Inelastic demand means that there's little or no change in quantity demanded when there's a change in the price of a product.

Quantity demanded has little or no sensitivity to changes in price.

If the coefficient of elasticity is greater than one, demand is elastic.

Elastic demand is when a small change in price has a greater effect on the quantity demanded.

If the coefficient of elasticity were equal to one, it means that demand is unit elastic.

Unit elastic demand means a change in price leads to the same proportional change on quantity demanded.

I hope my answer helps you

3 0

3 years ago

One major advantage of limited liability is that it:________.

Finger [1]

Answer: c. shields the personal assets of owners from liability claims.

Explanation:

An advantage of limited liability is that it shields the personal assets of owners from liability claims.

For a limited liability company, it should be noted that the liabilities of the members in the company for the debts that are incurred are limited only to the investment of the members. Personal assets are not affected if the company first into debt.

3 0

2 years ago