On May 1, 2017, Crane Company purchased the copyright to Blue Spruce Corp. for $112800. It is estimated that the copyright will have a useful life of 4 years. The amount of amortization expense recognized for the year 2017 would be:_______. a) $28200 b) $15040 c) $18800. d) $14100.

Answers

Answer 1

Answer:

Answer:

$18,800

Explanation:

The amortization expense can be calculated by dividing the cost of copyright to purchase by the estimated useful life and then multiplied by the number of months covered until May 1, 2017.

Amortization expense = Cost to purchase / Estimated useful life) x 8/12 Amortization expense = ($112,800 / 4 years) * 8/12

Amortization expense = $18,800

As the copyright is purchased on may 1 it will cover 8 months till 31 december 2017

Related Questions

The Accounts Receivable balance for Bach Consulting is $4,400,000 as of May 31, 2020. Before calculating and recording the month’s bad debt expense, there is a credit balance in the Allowance for Doubtful Accounts of $80,000. The May 2020 net sales were $30,000,000. In the past several years, 1% of net sales have proven uncollectible. An aging of accounts receivable results in a $360,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2020.PART A: PERCENT OF SALES METHODAssume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.What adjusting entry does Bach make to record May 2020 Bad Debt Expense?What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________PART B: ANALYSIS OF RECEIVABLES METHODAssume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.What adjusting entry does Bach make to record May 2020 Bad Debt Expense?What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________Problem 3 Use PVH Corp.’s financial statement information to answer the following questions.Provide the following account balances for PVH:February 2, 2020February 3, 2019Accounts Receivable (gross)Allowance for Doubtful AccountsAccounts Receivable, netWhich of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)? Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020? Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020? Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019. Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.
With an inflation rate of 9 percent, prices would double in how many years?
The account balances and income statement of Winfrey Towing Service on June 30, 2018, follow:Equipment $18,250 Service Revinue $10,800Office Supplies 1,400 Account Receivable 8,400Notes Payable 5,000 Accounts Payable 11,000Rent Expense 550 Retined Earnings, June 1, 2018, 3,900Cash 2,200 Salries Expense 1,900Dividends 4,000 Common Stock 6,000Required:a. Prepare the statement of retained earnings for Winfrey Towing Service for the month ending June 30, 2018.b. What does the statement of a retained earnings report?
Woodward Corporation reported pretax book income of $1,417,500. Included in the computation were favorable temporary differences of $300,000, unfavorable temporary differences of $106,500, and favorable permanent differences of $192,000. Assuming a tax rate of 34 percent, compute the company’s current income tax expense or benefit. (Amounts to be deducted should be indicated by a minus sign.)Pre-tax book incomeFavorable temporary differencesUnfavorable temporary differencesFavorable permanent differencesTaxable incomeTax rate%
In January, 2006, Findley Corporation purchased a patent for a new consumer product for $720,000. At the time of purchase, the patent was valid for fifteen years. Due to the competitive nature of the product, however, the patent was estimated to have a useful life of only ten years. During 2011 the product was permanently removed from the market under governmental order because of a potential health hazard present in the product. What amount should Findley charge to expense during 2011, assuming amortization is recorded at the end of each year?a. $480,000.b. $360,000.c. $72,000.d. $48,000.

, Inc. retires a $15 million (face value) bond issue when the carrying value of the bonds is $13 million, but the market value of the bonds is $16 million. The entry to record the retirement will include: Select one: a. A gain of $2 million b. A loss of $2 million c. A loss of $4 million d. A gain of $4 million e. A loss of $3 million

Answers

Answer:

Loss on bond redemption = $3 million

Explanation:

Given:

Face value = $15 million

Carrying value = $13 million

Cash paid = $16 million

Find:

Profit / loss

Computation:

Loss on bond redemption = Carrying value - Cash paid

Loss on bond redemption = $13 million - $16 million

Loss on bond redemption = $3 million

The entry to record the retirement will include option E. A loss of $3 million. To understand the calculation see below.

Bond Redemption

We are provided with the information about :

Face value = $15 million

Carrying value = $13 million

Cash paid = $16 million

We need to find profit or loss. The difference between Carrying value and Cash paid is the profit or loss.

Carrying Value - Cash paid

$13 million - $16 million

-$3 million, the answer is negative hence there is loss.

Therefore, the correct option is E. A loss of $3 million.

Learn more about Redemption here:

brainly.com/question/7158291

At the beginning of the year, a firm has current assets of $328 and current liabilities of $232. At the end of the year, the current assets are $493 and the current liabilities are $272. What is the change in net working capital?

Answers

Answer:

$125

Explanation:

Computation for the change in net working capital

Using this formula

Change in net working capital =( Ending Current asset- Ending Current liabilities) - (Beginning Current asset- Beginning Current liabilities)

Let plug in the formula

Change in net working capital =

($493 – $272) – ($328 – $232)

Change in net working capital = $221-$96

Change in net working capital =$125

Therefore the Change in net working capital will be $125

Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs.Assume that Minneapolis’ sales by major market are:
Market
Minneapolis Medical Dental
Sales $ 330,000 100 % $ 220,000 100 % $ 110,000 100 %
Variable expenses 198,000 60 % 143,000 65 % 55,000 50 %

Contribution margin 132,000 40 % 77,000 35 % 55,000 50 %
Traceable fixed expenses 39,600 12 % 11,000 5 % 28,600 26 %

Market segment margin 92,400 28 % $ 66,000 30 % $ 26,400 24 %

Common fixed expenses
not traceable to markets 9,900 3 %

Office segment margin $ 82,500 25 %

The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $4,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $38,500 or increase sales in the Dental market by $33,000.
Required:
Calculate the increased segment margin.for Medical:
Calculate the increased segment margin for Dental:

Answers

Answer:

Increase Segment margin for Medial = $9,075

Increase Segment margin for Dental = $12,100

Explanation:

The calculation of increased segment margin.for Medical and Dental is shown below:-

Medical Dental

Incremental Sales $38,500 $33,000

Less: Variable Cost ($25,025) ($16,500)

(Medical 65% and ($38,500 × 65%) ($33,000 × 50%)

Dental 50%)

Incremental

Contribution Margin $13,475 $16,500

Less: Traceable

Advertising Cost ($4,400) ($4,400)

Increase Segment

Margin $9,075 $12,100

At the start of the year, your firm's capital stock equaled $100 million, and at the end of the year it equaled $105 million. The average depreciation rate on your capital stock is 20%. Gross investment during the year equaled A) $1 million B) $5 million. C) $7 million D) $25 million

Answers

Answer:

The answer is D.

Explanation:

Net investment equals Gross investment minus depreciation.

Net investment equals Investment at the beginning of the year minus Investment at the end of the year.

Net investment = $105 million - $100 million.

Net investment = $5million.

Depreciation = 20% of investment at the start of the year

= 20% of $100million

= $20million.

Gross investment is therefore,

$5million + $20million

=$25 million

Answer:

Option D,$25 million is the correct answer.

Explanation:

The net investment formula can be used to compute gross investment by changing the subject of the formula as shown below:

Net investment = gross investment minus depreciation

Net investment =Closing capital stock minus opening capital stock

closing capital stock is $105 million

opening capital stock is $100 million

net investment=$105 million-$100 million=$5 million

Gross investment is unknown

depreciation=opening capital stock* depreciation %

depreciation=$100 million*20%

=$20 million

$5 million=gross investment-$20 million

gross investment =$5 million+$20 million

gross investment =$25 million

When a manager treats employees as lazy, unmotivated, and in need of tight supervision, the employees eventually meet the manager's expectations by acting that way. According to Douglas McGregor, this is known as a(n)___________.

Answers

Answer:

A self-fulfilling prophecy.

Explanation:

A self-fulfilling prophecy -

It is the socio psychological phenomenon ,

According to the prediction is something which is person truly believes , and at last comes out to be true , is referred to as a self - fulfilling prophecy .

The action of the people is directly linked to their beliefs , i.e. , whatever is the belief of the people , the same is showcased in the action of the person.

Hence , from the given scenario of the question,

The correct term is A self-fulfilling prophecy.

"Which statements are TRUE about variable annuities? I Contributions to the separate account are tax deductible II Contributions to the separate account are not tax deductible III Earnings in the separate account build tax-deferred IV Earnings in the separate account are taxable each year"

Answers

Answer: II Contributions to the separate account are not tax deductible

III Earnings in the separate account build tax-deferred

Explanation:

Variable Annuities represent an investment vehicle where one puts money in a certain type of investment with the goal being that they will earn an income in retirement which is dependent on how their chosen investment performed therefore making the payout variable.

Contributions to the separate account are not tax deductible. The tax advantage of Variable annuity contracts instead is that the income earned from the annuity gets to build tax-deferred with taxes only applying to them when a withdrawal is made.

Other Questions

A. The August 31 balance shown on the bank statement is $9,799. b. There is a deposit in transit of $1,247 at August 31. c. Outstanding checks at August 31 totaled $1,870. d. Interest credited to the account during August but not recorded on the company's books amounted to $115. e. A bank charge of $37 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived. f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $625 had been recorded as a disbursement of $367. g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,356.Required: Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.

Project A has a predicted payback period of 2.5 and Project B has a predicted payback period of 5. Based on this information we can conclude that Select one: A. more information should be gathered before deciding on which project, if either, is desirable. B. Project A is preferred to Project B. C. Project B provides twice the return of Project A. D. Project B is preferred to Project A, but it is not necessarily twice as profitable.

Please Help me, with this question for one of my class discussions. Think of a product and describe the stages of production the product goes through.

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:Sales $ 1,350,000Selling price per pair of skis $ 450Variable selling expense per pair of skis $ 46Variable administrative expense per pair of skis $ 19Total fixed selling expense $ 140,000Total fixed administrative expense $ 115,000Beginning merchandise inventory $ 75,000Ending merchandise inventory $ 120,000Merchandise purchases $ 315,0001. Prepare a traditional income statement for the quarter ended March 31.2. Prepare a contribution format income statement for the quarter ended March 31.3. What was the contribution margin per unit?