All categories

3 years ago

Calculate amortization expense

Business

1 answer:

pogonyaev3 years ago

6 0

Answer: $800,000

Explanation:

The total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items will be:

Ammortization value = Patent value / Useful life

= $4,000,000 / 5

= $800,000

Therefore, the ammortization value is $800,000 per year.

You might be interested in

The Unique Bookshelf Company is considering the purchase of a custom delivery van costing approximately $50,000. Using a discoun

Georgia [21]

Answer:

$1,200

Explanation:

Given that

Purchase of a customer delivery van = $50,000

discount rate = 20%

Present value of future cost savings = $51,200

Yield = 20%

Based on the above information, as per the net present value the initial cost of the equipment should not be more than the present value of cash inflows i.e. $51,200

So the more than amount is

= $51,200 - $50,000

= $1,200

8 0

3 years ago

a. Inventory, Beginning 300 $ 12 For the year: b. Purchase, April 11 900 10 c. Purchase, June 1 800 13 d. Sale, May 1 (sold for

dem82 [27]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Inventory, Beginning: 300 units at $ 12

For the year:

Purchase, April 11: 900 units at $10

Purchase, June 1: 800 units at $13

Sale, May 1 (sold for $40 per unit) 300

Sale, July 3 (sold for $40 per unit) 600

Units sold= 900 units

Inventory= 2000 - 900= 1,100 units

We will assume periodic inventory:

FIFO (first-in, first-out)

COGS= 300*12 + 600*10= $9,600

Inventory= 300*10 + 800*13= $13,400

LIFO (last-in, first-out)

COGS= 800*13 + 100*10= $11,400

Inventory= 800*10 + 300*12= $11,600

8 0

3 years ago

Differences in net operating income between super-variable and variable costing occur because of the treatment of ______ costs u

saveliy_v [14]

Answer:

fixed overhead is accounted for

Explanation:

The difference between reported net income on variable costing and absorption costing income statements is based on how:fixed overhead is accounted for

6 0

2 years ago

Hooper Printing, Inc. has a bond issue outstanding with 14 years left to maturity. The bond issue has a 7% annual coupon rate an

lord [1]

Answer:

9.35%

Explanation:

Annual coupon amount = Coupon rate × Fave value of bond = 7% × 1,000 = $70.

Expected current yield = Annual coupon amount ÷ Current market price per bond = $70 ÷ $749.04 = 0.0935, or 9.35%.

Therefore, the expected current yield for the next year on this bond issue is 9.35%.

6 0

2 years ago

54) Marika is a senior journalist at a news agency. She goes on a temporary leave for six months and travels around different pa

yKpoI14uk [10]

The answer is: Sabbatical

Sabbatical refers to a paid leave given to employees in order to study or travel. The term sabbatical is taken from the bible (where God rest on the seventh day after working for six days). Because of this, some companies only granted a sabbatical only if they already dedicated their life for the company for 7 years.

8 0

3 years ago