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Trava [24]
3 years ago
13

On January 1, 2013 Vick Company purchased a trademark for $400,000, which had an estimated useful life of 16 years. In January 2

017, Vick paid $60,000 for legal fees in a successful defense of the trademark.
Required:

How much should Vick record as trademark amortization expense for 2017?
Business
1 answer:
antoniya [11.8K]3 years ago
5 0

Answer:

$30,000

Explanation:

Usually, patents do not have a salvage value. If the useful life is 16 years, the amortization rate will be 1/16 x 100

=0.0625 x 100

=6.25%

Before January 2017, the trademark had been amortized for four years ( 2013, 2014, 2015, and 2016.)

Amortization per year = 6.25% x  $400,000

=0.0625 x $400,000

=$25,000 per year: Four year amortization would be

=$25,000 x 4

=$100,000

The Book value as of January 2017 will be

=$400,000 -$100,000

=$300,000

add legal fee

=$300,000 + $60,000

=$360,000

remaining useful life = 16 -4 years = 12 years.

new depreciation rate = 1/12 x 100

=0.08333

Depreciation amount for 2017

= 0.08333 x  $360,000

=$30,000

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Throughout the process of establishing its strategy, Acer’s leadership has monitored the strategies of HP and other PC manufactu
nikklg [1K]

Answer: Competitive analysis

Explanation: Competitive analysis can be defined as the analysis done by the management of a business entity to evaluate the strength and weakness of competitors in the market. It is usually done for company marketing.

In the given case, Acer is evaluating its competitors characteristics for establishing its strategy. Thus, we can conclude that the correct option is C.

3 0
4 years ago
Randy’s Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are
marusya05 [52]

Answer:

Please see answers below

Explanation:

A. For break even point

= fixed expenses - Contribution margin per unit

Where,

Contribution margin per unit = Sales per unit - Variable cost per unit

= $11 - $4

= $7

Therefore,

Break even points in unit = $58,800 ÷ $7

= 8,400 pizzas

B. Target profit

The break even point = Fixed costs expenses + Target profit / Contribution margin per unit

= ($58,800 + $54,000) / $7

= $112,800 / $7

= 16,114 pizzas

C. Margin of safety in dollars

= (Total sales - Break even in sales) * Selling price per unit

= ( 9,900 - 8,400 ) * $11

= 1,500 * $11

= $16,500

D. Contribution margin in lay man's term.

Contribution margin is when a firm makes or produces a product and then sold it, the difference that is left after deducting variable costs(costs associated with the sales like cost of raw materials used in producing the product) from the the sales of such product is the contribution margin.

4 0
4 years ago
Assume a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1, 2018. On the acquisiti
Goryan [66]

Answer:

Explanation:

The file attached shows the full question

The picture attached shows the solution to the problem

Download docx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> docx </span>
8df70f8bd8b0f1df09080cc77b3c9b75.png
7 0
3 years ago
Jim and Allison both scored in the bottom 20% of IQ tests; however, Jim went on to complete a 4-year college degree, whereas Ali
LekaFEV [45]

Answer:

Jim will earn more money than Allison.

Explanation:

The average salary for someone with a 4 year college degree is $51,000 (2019), that doesn't mean that Jim will earn that money, he might earn more or less, but it is a useful parameter. The average salary of someone who just finished high school is $28,000 (2019).

If we compare both average national salaries, we can assume that Jim will earn much more than Allison.

5 0
4 years ago
Chang Industries has 2,200 defective units of product that already cost $18 each to produce. A salvage company will purchase the
ipn [44]

Answer:

The $18 per unit is a:

sunk cost.

Explanation:

Chang's cost incurred per unit of $18 is a sunk cost.  A sunk cost is a cost that has already been incurred.  It does not make a difference in a future decision. This implies the Chang may decide to correct the defect or otherwise.  What decision it takes should be based on the cost and revenue that results from the next decision, and not the past decision.

8 0
3 years ago
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