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kirill [66]
3 years ago
14

Russell Enterprises acquired a franchise from Michael Incorporated for $300,000. The franchise agreement is for a period of six

years. Russell uses straight-line to amortize all intangible assets. What would be the reported book value of the franchise two years after the purchase
Business
1 answer:
Alexeev081 [22]3 years ago
5 0

Answer:

The reported book value of the franchise will be $200000

Explanation:

An intangible asset is an asset that lacks a physical substance. The value of an intangible asset is amortized just as the value of a tangible/physical asset is depreciated.

The straight line amortization charges a constant amortization expense through out the expected useful life of the intangible asset.

The formula to calculate the straight line amortization per year is,

Amortization expense per year = Cost / Expected Useful life

Amortization expense per year = 300000 / 6    = $50000 per year

The book value of an asset is the value after deducting the accumulated depreciation/amortization from the cost.

Book value = cost - accumulated depreciation or amortization

Book value = 300000 - (50000 * 2)     = $200000

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3 years ago
Large data units are broken into smaller pieces by a process called
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The answer in the description above is segmentation. This is the process of which large data undergone into having their properties to be broken into small pieces in which will help in having them to fit with a specific TCP segment.

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3 years ago
The chapter identifies three governing mechanisms for strategic alliances: non-equity, equity, and joint venture. List the benef
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The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.

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3 0
2 years ago
Mitch, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bond
Ivan

Answer:

The answer is: $18,289.50

Explanation:

The interest earned from the investment in Birmingham Bonds is not included in Mitch's gross income.

If Mitch earned $100,000, so he will fall under the fourth bracket for single filers.

He will have to pay $14,089.50 plus 24% of any income over $82,500.

taxes due = $14,089.50 + [($100,000 - $82,500) x 24%]

taxes due = $14,089.50 + $4,200 = $18,289.50

6 0
3 years ago
Companies generate income from their "regular" operations and from things like interest on securities they hold, which is called
mylen [45]

Answer:

$1,500

Explanation:

The computation of the firm operating income is shown below:

= Sales - operating cost other than depreciation - depreciation expenses

= $9,000 - $6,000 - $1,500

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3 years ago
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