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
Alexxx [7]
2 years ago
15

On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31

, it was estimated that goodwill of $6,000,000 was impaired.
a. Record the acquisition of patent.
b. Journalize the adjusting entry on December 31 for the amortization of the patent rights.
c. Journalize the adjusting entry on December 31 for the impaired goodwill.
Business
1 answer:
Tasya [4]2 years ago
6 0

Answer:

April 1

Debit : Patent $1,500,000

Credit : Cash $1,500,000

December 31

Debit : Amortization $125,000

Credit : Accumulated Amortization $125,000

December 31

Debit : Impairment loss  $6,000,000

Credit : Accumulated Impairment loss $6,000,000

Explanation:

Both the Amortization and Impairment loss reduce the value of assets. They are therefore expenses accounted in Income Statement.

Amortization : is the loss of value of an asset due to passage of time.

Amortization Expense = (Cost - Residual Amount) ÷ Useful Life

                                     = ( $1,500,000 - $ 0) ÷ 12

                                     = $125,000

Impairment loss : is the excess of the Carrying Amount of an Asset over its Recoverable Amount( Higher of Value in Use and Fair Value less Cost to Sell)

You might be interested in
When Men's Wearhouse fired a salesperson who wasn't sharing walk-in customer traffic, and total clothing sales volume among all
Reika [66]

When Men's Wearhouse fired a salesperson who wasn't sharing walk-in customer traffic, and total clothing sales volume among all salespeople increased significantly, the company reduced destructive internal competition.

<h3>What is a destructive competition?</h3>
  • Multiple producers being driven out of the market by competition.
  • When there are numerous manufacturers of a good, prices are frequently driven down to the point that nobody makes a profit, which is when destructive competition takes place.

<h3>What do you mean by internal competition?</h3>
  • The aforementioned components are the foundation of our concept of internal competition, which is senior management-sanctioned duplication or overlap of activity within the firm's boundaries in an effort to resolve market or technology uncertainties.

<h3>Is competition is constructive or destructive?</h3>
  • However, competition can really be divided into two types: healthy competition and unhealthy competition.
  • Two competitors may work better together or may just cause mutual stress, similar to waves crashing into one another to create a larger wave.

Learn more about destructive internal competition here:

brainly.com/question/27911918

#SPJ4

3 0
2 years ago
It is important to identify and use only incremental cash flows in capital investment decisions:A) because they are the simplest
abruzzese [7]

Answer:

C) because ultimately it is the change in a firm's overall future cash flows that matter.

Explanation:

Under capital budgeting decisions, decisions are made with respect to addressing the questions like what is the benefit of selecting the project and investing on it.

If the answer to above question is raised income, then the project is selected. Accordingly the raised income in cash terms will be measured by increase in cash flows, that is incremental cash flows.

In simplest terms additional cash flows.

8 0
3 years ago
The higher the potential return, the _____. higher the liquidity of an investment higher the time risk for an investment higher
Inga [223]
<span>higher the risk for an investment</span>
8 0
3 years ago
Read 2 more answers
In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is
Alisiya [41]

Answer:

C. $17,500

Explanation:

1,300 / 200 = 6.5

we are going to hire between 6 and 7 welder as we are given the requirement <u>"for every 200 hours or fewer in a month"</u> we should round above and not below: 7 welder. Besides, we cannot hire "half" or "quarter" of an employee therefore we have to move between integer solutions.

7 0
3 years ago
The vice president for BakerStone comes to you for help with sharing and supporting the new changes. Explain how she can use con
anygoal [31]

The use of  continuous communication, can  promote the BakerStone mission statement because one can Communicate vital information to keep stakeholders always aware of BakerStone policies as well as actions.

<h3>How can the use of modeling  promote the BakerStone mission statement?</h3>

The use of modeling can promote the BakerStone mission statement as all their effort as well as input will be channeled towards achieving their mission statement.

Hence, The use of  continuous communication, can  promote the BakerStone mission statement because one can Communicate vital information to keep stakeholders always aware of BakerStone policies as well as actions.

Learn more about communication from

brainly.com/question/26152499

#SPJ1

6 0
1 year ago
Other questions:
  • What did you discusss in your response? Check all that apply
    15·1 answer
  • Telecom Systems can issue debt yielding 5 percent. The company is in a 30 percent bracket. What is its aftertax cost of debt?
    15·1 answer
  • A entry to a liability account decreases the account balance
    5·1 answer
  • Scenario: You are an American Red Cross Disaster Program Specialist in charge of teams trained to help in sheltering displaced p
    5·1 answer
  • What is likely to happen to the labor market equilibrium for firemen as building codes change to require firewalls and sprinkler
    9·1 answer
  • Branding is used to A. identify, anticipate and satisfy customer requirements. B. determine which products are intended for mark
    14·1 answer
  • According to the video, what skills do urban and regional planners need?
    14·2 answers
  • ____ is not a physical work environment characteristic.
    6·1 answer
  • Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increas
    14·1 answer
  • if 14.6 million people are unemployed, 155.5 million people are employed, and 7.9 million people are institutionalized, what is
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!