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kkurt [141]
2 years ago
11

During 2020, Starnes Corporation developed a patent. Starnes incurred the following costs related to the development of the pate

nt: tests to perfect the use of the patent for production processes, $9,600; research costs in the research laboratory, $33,600; and depreciation on equipment (that has alternative future uses) used in developing the patent, $6,400. In addition, in late December 2020, the company incurred legal fees for the patent registration, $11,200. The expected life of the patent is 20 years. On September 30, 2021, Starnes Corporation defended its patent in court after incurring legal fees of $4,800. The total estimated life of the patent at that time was adjusted to 15 years remaining from September 30, 2021.
Record journal entries for the following items.

a. Patent development and registration costs incurred in 2020.
b. Legal fees paid in 2021.
c. Amortization expense in 2021.
d. Amortization expense in 2022c. Amortization expense in 2021.
Business
1 answer:
Vitek1552 [10]2 years ago
7 0

Answer:

a. Patent development and registration costs incurred in 2020.

Dr Patent 11,200 (only patent registration fees)

Dr Research and development expense 49,600

    Cr Accumulated depreciation 6,400

    Cr Cash 54,400

b. Legal fees paid in 2021.

Dr Patent 4,800

    Cr Cash 4,800

c. Amortization expense in 2021.

Dr Amortization expense 607.50

    Cr Patent 607.50

($11,200/20 x 9/12) + ($15,000/20 x 3/12) = $607.50

d. Amortization expense in 2022

Dr Amortization expense 750

    Cr Patent 750

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4 0
2 years ago
(a) Explain the quantity theory and<br>(b) how does the theory explains the cause of inflation​
n200080 [17]
The quantity theory is a framework to understand price changes in relation to the supply of money in an economy.

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5 0
3 years ago
Sunny Co has a debt-to-equity ratio of 1.00, compared to the industry average of 0.80. Its competitor Carter Co., however, has a
ankoles [38]

Answer:

The answer is C.

Explanation:

Debt-to-equity ratio is an economical term that is used to express the balance between a companies total debt and its assets. It shows at what ratio the company's assets are funded by investors, stakeholders etc.

Since the industry average debt-to-equity ratio is 0.80 and the two companies have debt-to-equity ratios of 1.00 and 1.50 respectively, they are both over the average.

But with the higher ratio, Carter Co. has a higher financial risk compared to Sunny Co. and the industry average debt-to-equity ratio. So the correct answer is C.

I hope this answer helps.

8 0
3 years ago
Dawn's bridal boutique is having a sale on evening dresses. The increase in consumer surplus comes from the benefit of the lower
torisob [31]

Answer:

both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices.

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

Let assume that the price before the sale and after the sale is $1000 and $800. The willingness to pay of customer A is $1500 and for customer b is $900

consumer surplus of customer A before sale = 1500 - 1000 = 500

consumer surplus of customer A after sale = 1500 - 800 = 700

consumer surplus of customer B before sale =  0

consumer surplus of customer B after sale = 900 - 800 = 100

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6 0
2 years ago
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7 0
2 years ago
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