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
Zigmanuir [339]
3 years ago
5

On January 1, Year 1, Lowing Company acquired a patent from Generics Research Corporation for $3 million. The legal life of the

patent is 20 years, but Lowing expects to use it for 5 years. Pawson Company has committed to purchase the patent from Lowing for $500,000 at the end of that 5-year period. Lowing uses the straight-line method to amortize intangible assets with finite useful lives. What is the amount of amortization expense each year?
Requirements:
Amortization Expense________________
Note: the amount 25,000,000 is wrong
Knowledge Check 01
Business
1 answer:
pickupchik [31]3 years ago
4 0

Answer:

The amount of amortization expense each year is $500,000.

Explanation:

This can be calculated as follows:

Patent original cost = $3,000,000

Salvage value after 5 years = $500,000

Number of years to use before selling it = 5 years

Therefore, we have:

Annual amortization expense = (Patent original cost - Salvage value after 5 years) / Number of years to use before selling it = ($3,000,000 - $500,000) / 5 = $500,000

Therefore, the amount of amortization expense each year is $500,000.

You might be interested in
 Margaret, a vegetarian, is looking for a mushroom with a meaty texture to grill and eat instead of a hamburger. Which of the fo
storchak [24]
C. Portobello, is a good example of a mushroom with a meat like texture.
4 0
4 years ago
Read 2 more answers
All of the brands that Miguel can easily call to mind for laundry detergents, whether he would consider buying them or not, comp
AveGali [126]

The ability of Miguel to recall those brands of detergent is known as Retrieval set in marketing.

In marketing, the term "Retrieval set refers to series of brands that a consumer can recall from their memory whether they are making purchase or not".

Here, Miguel can easily call to his mind different brand of laundry detergents whether he is considering buying them or not.

The ability to recall those brands is known as Retrieval set in marketing.

Therefore, the Option A is correct.

Read more about this here

<em>brainly.com/question/8570566</em>

6 0
3 years ago
According to an article in the Wall Street Journal​, KB Home and other builders found demand for new houses increasing in 2017 a
Nadusha1986 [10]

Answer:

Generally speaking, demographic growth can affect the economy quite a lot, but the economy has a very little effect on demographic growth. E.g. the baby boomers were great for the economy during several decades, but there is no clear relationship between population growth and economic activity.

This means that companies like home builders whose demand depends on other factors besides the economy, will be less affected by economic recessions or expansions. E.g. the demographic growth in America was around 0.7% during 2019 and the economy was growing that year.

Actually, the US population has been declining over the last decades. The real growth factor in population has been immigration in the last decades, and that has also been declining lately.

7 0
3 years ago
1. Explain the difference between required rate of return and expected rate of return. If they are different at a specific point
77julia77 [94]

Answer: The answers to the questions are provided below.

Explanation:

1. The Required Rate of Return(RRR) is the absolute minimum return on an investment that an individual or firm would accept for the investment to be considered worthwhile. The required rate of return helps in deciding whether an investment is worth the cost or not.

An expected rate of return helps in knowing out how much one can expect to make from an investment. An expected rate of return is the return on investment that an individual or firm expects to make when investing in a stock.

The RRR is the least possible rate which would entice someone to invest while the expected rate of return is what the person plan to make from that investment and its calculation is based on probability.

When there is difference between the required rate of return and expected rate of return for an asset at a specific period of time, it means that the economic conditions aren't normal as there is either inflation or deflation in the market.

2. The holding period return is the total return gotten from holding an asset over a particular period of time which is known as the “holding” period while the expected return is the return based on probability-weighted average of likely returns from an investment.

3. Diversification is a technique that is applied to reduce risk through the allocation of investments among several financial instrument and industries. Diversification aims to maximize the returns through investment in different sectors because each sector will likely react differently when there's a risk. Investing in more than one asset through diversification is essential because each asset will react differently when a risk occurs.

3 0
4 years ago
A firm maximizes its profitability when it: creates products similar to the products of its competitors. strips all the value ou
sineoko [7]

A firm maximizes its profitability when it<u> "configures its internal operations to support the position selected by it on the efficiency frontier".</u>


In economics, profit maximization is the short run or long run process by which a firm may decide the value, information, and yield levels that prompt the best benefit.

The general guideline is that the firm maximizes profit by delivering that amount of yield where negligible income breaks even with peripheral expense. The profit maximization issue can likewise be drawn closer from the information side.

6 0
3 years ago
Other questions:
  • The amount of earnings left after taxes and other deductions are taken out is what
    11·1 answer
  • Best Value Outlet recently announced that it intends to pay dividends of $0.40, $0.60, $0.75, and $1.00 per share over the next
    7·1 answer
  • If I have a half circle how many degrees are they?
    11·1 answer
  • LO 2.1Identify the three primary classifications of businesses and explain the differences among the three.
    7·1 answer
  • A contractual arrangement under which the franchisor grants the franchisee the right to sell certain products, to perform specif
    14·1 answer
  • Imagine that you are the CEO of Wal-Mart. Pick three ways discussed in this section to explain how you would improve customer se
    8·1 answer
  • These financial statement items are for Snyder Corporation at year-end, July 31, 2017. Salaries and wages payable $2,580 Salarie
    5·1 answer
  • A firm has a demand function p=108-5q and the cost function c=-12q+q^2. find the price at which profit is maximum. find the maxi
    7·1 answer
  • The chart shows a range of credit scores.
    11·2 answers
  • How can professional assist school leavers to be successful business owners
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!