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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.

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Zoum Corporation had the following transactions during the year: Issued $250,000 of par value common stock for cash. Recorded an
ANTONII [103]

Answer:

-$210,000

Explanation:

Issued Common Stock at par for Cash $250,000

Less:

Declared and paid a cash dividend $20,000

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Net Cash provided by Financing Activities ($210,000)

8 0
3 years ago
How the 4 factors of pruduction fit together land,capital,labor,entreprenurship​
Mrrafil [7]

Explanation:

To understand the basic philosophy behind the four factors of production

Land - Labor - Capital - Entrepreneurship

Lets consider an example:

Someday, just finishing your college, you think of starting a pizza business and you start selling pizza's one day. You might end up making a Pizza brand like Pizza Hut.

Here, in this example, to start your pizza shop, you need a place or area, this is known as Land factor. When you start making pizza, you need someone to work in that shop, (or if you doing it by yourself too) there should be at least some human being doing it, this factor is referred as Labor. To start the pizza shop, you need to buy the equipment, taking a shop on rent, or buying it, renovation of the shop etc. All of these things need, of course, Money, which is referred as Capital here. The idea you going to start this business, the courage to make it, definitely makes you an Entrepreneur, in utilizing all other factors effectively and efficiently. Therefore, this is linkage between these four factors of production, and how they fit together.

7 0
4 years ago
A firm owed accounts payable of $250,000 at the beginning of the year and $350,000 at the end of the year. This $100,000 differe
pshichka [43]

Answer and Explanation:

Since in the question it is mentioned that the account payable beginning balance is $250,000 and the ending balance of the account payable is $350,000 so here $100,000 different would rise the cash from operations

Therefore the same is to be considered as there is an increase in inflows of cash

So the difference would be rise the cash from operations

4 0
3 years ago
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Ann [662]

Answer:

The correct answer is Assign costs of work process.

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Among the main changes to be able to allocate costs, Julio must take the costs of work in process in a single account, instead of directly to different department accounts. This will ensure better control of the information, avoiding mistakes in the planning process.

4 0
3 years ago
Jeremiah Brown has been making contributions into an individual retirement account for his retirement. His contributions are not
Leviafan [203]

Answer: <em><u>Jeremiah Brown has a Roth IRA individual retirement account.</u></em>

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