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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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Bull’s weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stoc
hram777 [196]

Answer:

with only one chain and one pendant per necklace.write an expression that shows how much it will cost ronnie to make s short necklaces and n long necklaces. then find the cost for 3 short necklaces 2 long necklaces

8 0
3 years ago
What is the effect on market when suppliers under invest in their businesses​
yanalaym [24]

Answer:

  • Low supply
  • Scarcity
  • Low economic growth

Explanation:

When suppliers under invest in their business, they will end up having the capacity to only produce less than the market requires. Should this happen, supply will be reduced in the market which would lead to relative scarcity all else being equal.

For economic growth to happen, there must be increasing production in an economy so if suppliers are under investing and production is low, there might be low or no economic growth.

8 0
2 years ago
Gundy Company expects to produce 1,213,200 units of Product XX in 2020. Monthly production is expected to range from 80,000 to 1
fiasKO [112]

Answer:

Gundy Company

Flexible Budget Report for March 2020:

                                      Actual Budget   Flexible Budget   Variance

Direct materials                 $515,000        $485,000           $30,000  U

Direct labor                         670,000           679,000               9,000  F

Variable overhead           1,073,000         1,067,000               6,000  U

Actual fixed costs              679,000           679,000                       0  None

Total costs incurred    $2,937,000       $2,910,000           $27,000  U

Explanation:

a) Data and Calculations:

Expected production of Product XX in 2020 = 1,213,200 units

Monthly production range = 80,000 to 114,000 units

Budgeted variable manufacturing costs per unit are:

Direct materials      $5

Direct labor             $7

Overhead              $11

Total variable       $23

Fixed manufacturing costs per unit:

Depreciation are   $6

Supervision are     $1

Total fixed costs   $7

Total costs =       $30

March 2020 costs incurred for 97,000 units:

Direct materials        $515,000

Direct labor              $670,000

Variable overhead $1,073,000

Actual fixed costs      679,000

Total costs incurred $2,937,000

Flexible Budget Report for March 2020:

                                      Actual Budget   Flexible Budget   Variance

Direct materials                 $515,000        $485,000           $30,000  U

Direct labor                         670,000           679,000               9,000  F

Variable overhead           1,073,000         1,067,000               6,000  U

Actual fixed costs              679,000           679,000                       0  None

Total costs incurred    $2,937,000       $2,910,000           $27,000  U

4 0
3 years ago
Stock A has an expected return of 8%, stock B has an expected return of 2%, and the return on Treasury-Bills is 4%. You buy $200
Tomtit [17]

Answer:

The expected return of your portfolio is 6.02%

Explanation:

Stock     Value     Expected Rate of return   Weightage

  A          $200                   8%                      $200/$300 = 0.67

  B          $100                    2%                      $100/$300 = 0.33

Expected Rate of return = ( Expected rate of return Stock A x Weightage of Stock A ) + ( Expected rate of return Stock B x Weightage of Stock B )

Expected Rate of return = ( 8% x 0.667 ) + ( 2% x 0.33 )

Expected Rate of return = 0.0536 + 0.0066 = 0.0602 = 6.02%

3 0
2 years ago
What is a modification problem? What are the three possible types of modification problems?
Oxana [17]

Answers and explanations:

1) A modification problem takes places when creating a database two different type of information is entered in the same chart row generating inaccuracy. The only form to solve this issue is creating a new row so each piece of information will be stored in one row particularly.

2) There are three (3) types of modification problems: the deletion problem (<em>the single row containing information from different themes can be deleted losing data</em>), the update problem (<em>new information entered could lead to more inconsistency</em>), and the insertion problem (<em>similar to deletion, a new row can be inserted instead of the row causing problem but information will be missing</em>).

4 0
3 years ago
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