Answer:
Explanation:
The journal entry is shown below:
Amortization expense - Patent A/c Dr $32,380
To Patent A/c $32,380
(Being amortization expense for the first year is recorded)
The computation is shown below"
= Purchase cost of patent ÷ estimated useful life
= $161,900 ÷ 5 years
= $32,380
For the intangible assets, the amortization expense is considered,not the depreciation expense and the same is to be taken.
Answer:
Option (B) is correct.
Explanation:
Given that,
Project 1:
Initial investment = $120,000
Cash inflow Year 1, Year 2, Year 3, Year 4, Year 5 = $40,000
Hence,
Annual cash flow = $40,000
Payback period:
= Initial investment ÷ annual cash inflow
= $120,000 ÷ $40,000
= 3 years
Therefore, the payback period for Project I is 3 years.
Answer:
The value of the project today is $75,866
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Years 1 2 3
Cash Flows $32200 $41800 $22,900
Discount Factor 14% 0.8772 0.7695 0.6750
Present Values $28,245.61 $32,163.74 $15,456.85
Net present value = $75,866.20
Answer:
The correct answer is: expressed in the prices of a base year.
Explanation:
Real GDP is an inflation-adjusted measure to calculate changes in economic output. It calculates the value of final goods and services produced in an economy in a year expressed in the prices of a base year.
Real GDP does not include changes in the price of products as it is calculated at constant prices.
Nominal GDP, on the other hand, is calculated on the basis of current prices. It includes changes in prices and is not inflation-adjusted. That is why real GDP is preferred over nominal GDP.
Answer: No it is not.
Explanation:
Uber by first establishing itself and then fighting regulators leaves itself open to attack around the world. This is because the Regulators have the power to keep adjusting the laws that govern Uber if they feel that Uber has an unfair advantage or if it's existence is detrimental to the society. Uber has been accused many times of various infractions such as Tax Evasions and being a conduit through which crime can be committed because it did not conduct proper background checks.
Going back to the issue of taxes, if the regulators feel that Uber may be avoiding taxes, they could impose laws that either cause an increase in Uber prices or remove them from a location which can have a native influence on Uber's bottomline.
This approach is not good because regulators do not like being fought and will try to ascert dominance. It is simply not viable and this has been proven with Uber's many suspensions around the world.
