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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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Answer:

The retained earning would be debited by ($60,000)

Explanation:

According to the given data we have the following:

Number of shares outstanding=60,000

par value of $5 per share

stock dividend declared=cc

Therefore,  to calculate the amount either (debited) or credited to retained earnings we would have to make the followin calculation:

Dividend value=Number of shares outstanding×par value of $5 per share×stock dividend declared

Dividend value=60,000×$5×20%

Dividend value=($60,000)

Therefore, as the dividend paid reduces retained earnings, the retained earning would be debited by ($60,000)

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3 years ago
Strategies on how to minimize expenses in cooking?​
Nitella [24]

Answer:

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5. Manage Your Food Orders

6. Implement Restaurant Portion Control

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8. Utilize Your Daily Specials

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Explanation:

8 0
2 years ago
Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive?
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Nothing the payments will cease.

Payments:

For the balance of the annuitant's life, a straight or pure life annuity will provide a set sum of income. Regardless of the amount of unpaid principal, this payment will end at death. There are no compensation or refunds made to survivors.

The beneficiary will receive the amount placed into the plan or the cash value, whichever is larger, if the annuitant passes away before the payment term.

Banknotes and coins (cash), deposits, and credit on an account with a financial institution or a comparable entity that can be run using payment instruments are all considered means of payment.

Learn more about Payment here brainly.com/question/25898631

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8 0
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What assumptions about the economy must be true for the invisible hand to work? to what extent are those assumptions valid in th
sleet_krkn [62]
<span>The main assumption that has to be true for Adam Smith's theories to be valid is that everyone is acting in a way that most benefits them and nobody else. Since resources are seen as limited, people are thought to act in ways that most benefit them and nobody else. These assumptions might be valid in many cases, but the concept of charity shows that they are not always the case, and the invisible hand might be guiding people at times, but not always.</span>
3 0
3 years ago
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Brittany, who is single, cares for her father Raymond. Brittany pays the bills relating to Raymond's home. She also buys groceri
AVprozaik [17]

Answer:

Taxable Income = $29,100

Explanation:

Itemized Deductions=$3000

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