I just want to know how to get the answer which is 750,000 MC47 On January 1, 2019, RMP Innovations, Inc. had capitalized cost ofP2,500,000 for a new computer software product with an economiclife of 5 years.expected that sales of software during its five year economic lifewould total P5,000,000. The expected sales in the remaining fourSales for 2019 amounted to P1,500,000.It is years are:2020P1,200,0003;2021 - P1,000,000; 2022 -P900,000; and 2023 - P400,000On December 31, 2019, the software had fair value less cost to sellof P2,250,00o.How much is the computer software amortization expense for theyear ended December 31, 2019?P750,000P500,000P250,000P225,000a.b.с.d.

Amortization refers to writing off of an intangible asset over a specific time period.

Answered: 7 On January 1, P2,500,000 for life of…

Business

Accounting

7 On January 1, P2,500,000 for life of 5 years expected that would total PE

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: How did you get the 585,000 in Plan A? Show how it's done please.

A: In Plan A, the investor puts $10,000 into a mutual fund with a 10 percent annual return. After 1…

Q: You are an angel investor, and 4 entrepreneurs have approached you to build some innovative folding…

A: Net present value is a capital budgeting metric that helps analyze the project's profitability by…

Q: 6. Suppose you purchased equipment and agreed to pay the manufacturer $100,000 in 4 years for the…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: Consider a project to supply 103 million postage stamps per year to the U.S. Postal Service for the…

A: Bid price should include all cost including variable cost and fixed cost and also initial investment…

Q: Assume that you have $5,000 to invest in the company IBM, what are the five most important criteria…

A: Solution- There can be various aspects into which one can look both financial and non financial…

Q: are deciding between two mutually exclusive investment opportunities. Both require the same initial…

A: Crossover rate: The crossover rate is used in capital budgeting analysis exercises to demonstrate…

Q: Use the data below for problems 6 to 10. Proj Y 0). (420000) 1). 400000 2). 185000 Project Z 0).…

A: Analysing Projects Y and ZThe data provided shows the initial investment and cash flows for Project…

Q: 4) A plant that was built five years ago required a capital investment of t10 million. The plant…

A: Cost of fixed assets is determined not only on the basis of the acquisition cost and incidental…

Q: Consider a project to supply 103 million postage stamps per year to the U.S. Posta Service for the…

A: Bid price should include all cost including variable cost and fixed cost and also initial investment…

Q: Town station is saving money to build a new loading platform. Three years ago they set aside 23,000…

A: Future Value = Present Value * ( 1 + Interest rate) n Interest rate = [ (Future Value/Present…

Q: Consider the financial data for a project given in the table below. (a) What is for this project?…

A: Making decisions about capital budgeting entails assessing and choosing capital expenditures or…

Q: and the yearly benefit is $250,000, with a maintenance cost (starting in year 1) of $50,000, is…

A: Internal rate of return(IRR) is the original or actual rate of return(ROR) being resulted by a…

Q: You are assigned with building a laboratory. Construction and equipment will cost you $1 million…

A: The perpetuity refers to the series of regular payments and receipts that last forever. The present…

Q: Income statement information for Lucy Company is as follows: Sales $175,000 Cost of goods…

A: Vertical Analysis - Total Sales will be considered as 100% and other Income Statement items will…

Q: A project has an estimated cost of $200,000 with an estimated revenue of $400,000. What is the BCR?

A: Benefit-cost ratio (BCR): It is a ratio that shows the relationship between the relative costs and…

Q: Help me out please asap. Don't use any AI, it's strictly prohibited. Otherwise I will report the…

A: Approach to solving the question: In order to determine which statement is true based on the…

Q: Ivan, an industrial engineering student, is working on a homework problem for Engineering Economy.…

A: The today’s worth of dollar at a later date is the Present Value of the dollar. For example, the…

Q: Problem 5 1. You are considering an investment with a NPV is $1 million, ignoring working capital.…

A: Net present value is difference between present value of cash inflow and present value of cash…

Q: Your friend would like to add an addition to the home. The home was originally purchased for…

A: The return on investment (ROI) is a financial metric that helps to measure the efficiency of an…

Q: at is WACC used for? If the firm calculated WACC 5 years ago, can we use that for a project to

A: WACC is weighted average cost of capital and is weighted cost of equity and weighted cost of debt…

Q: Your company is eyeballing a new project in which they believe will cost $40,000 to start. They…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: QUESTION 7 The cost of the project is $600,000. You expect the project to make $1,500,000 in year 7…

A: Net present value (NPV) is a financial metric that tries to show how much an investment opportunity…

Q: where did the $600,000 come from?

A: Data given: Additional labor cost = $5,000 per year Reduce material costs by $15,000 Increase…

Q: Which one of the following projects are feasible: Project 1: Invest "3000$" today. At the end of…

A: Net present value is a tool of Capital budgeting to analyze the profitability of a project or…

Q: Please help! Thank you so much in advance. I need to show all work.

A: According to data given we will do the projects where IRR exceeds WACC so in the first question if…

Q: The answer $8955 (after rounding to the nearest dollar) came back correct. Can you please show me…

A: Present value of future amount/value With annual compounding interest rate (r), period in years (n)…

Q: Where is the $5,990,400 coming from?

Q: P3.1 Ashley Morgan estimates that if he does 15 hours of research using data that will cost $ of…

A: The objective of the question is to determine the cost of Ashley's research, the increase in…

Q: Consider a plot of land. You can construct an office building at a cost of $5m or a hotel at a cost…

A: Construction of office building:Initial investment = $5 millionNOIYear 1 = $240,000Year 2 =…

Q: PayPal is considering an update to its app. The update would cost 10 million dollars today, and 6…

A: The IRR of the project refers to the measure of the profitability of the project as it calculates…

Q: Both projects aim to units in the first year, 6,500 units in the second and third years and a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Can you help me understand how to get the 75,000 (check the 1st pic). In the table in 2nd pic,…

A: Calculation of Profit and loss distribution ratio and Explanation to ₱75,000 Bonus Capital is given…

Q: you show a revenue of $61.9K and $156K for Charleston and Chapel Hill. If the values of $.1.1M and…

A: Revenues are the amount which has been earned from the core operations of a person or a taxpayer…

Q: How to calculate the economic profit of each project?

A: Question 4 A: Economic profit is the profits arrived after deducting opportunity cost from the…

Q: If you were analyzing a replacement project and suddenly learnedthat the old equipment could be sold…

A: Introduction: This is based on the theory of replacement decisions. Usually, a replacement decision…

Q: Next year, in the good state of the world, one parcel of land is worth $130,000 and in the bad state…

A: A risk-free rate of return formula measures the interest rate that investors anticipate earning over…

Q: The quiz answer is profit $232,000 ... why

A: Mining depletes limited resources; as a result, the practice cannot be considered in any strict…

Q: ose a lottery with 1,000,000 tickets has a first prize of $200,000, three seconds prizes of $60,000…

A: Let the price of ticket be $x.

Q: Your friend has asked you to help him with a capital needs analysis. You calculated that total cash…

A: For determination of any targeted amount as a capital amount or sum assured in future, the capital…

Q: P3.1 Ashley Morgan estimates that if he does 15 hours of research using data that will cost $ of…

A: The objective of the question is to determine the cost of Ashley's research, the increase in return…

Q: Discuss in full detail, if you can borrow all the money you need for a project at 6 percent, doesn’t…

A: Cost of capital is the money paid to the lenders for borrowing money for the projects and is the…

Q: Your clients, who file MFJ, have a MAGI of $318,000. They recently sold their principal residence…

A: It is the income tax imposed under Section 1411 of the Internal revenue code. As per the provisions…

Q: Consider the following Table: 1. Draw the chash flow diagrams for (A, B and C) alternatives

A: Following formula is used for calculating present worth (PW) of a project. PW=Intial Cost+Annual…

Question

100%

I just want to know how to get the answer which is 750,000

MC47 On January 1, 2019, RMP Innovations, Inc. had capitalized cost of
P2,500,000 for a new computer software product with an economic
life of 5 years.
expected that sales of software during its five year economic life
would total P5,000,000. The expected sales in the remaining four
Sales for 2019 amounted to P1,500,000.
It is

years are:
2020
P1,200,0003;
2021 - P1,000,000; 2022 -
P900,000; and 2023 - P400,000
On December 31, 2019, the software had fair value less cost to sell
of P2,250,00o.
How much is the computer software amortization expense for the
year ended December 31, 2019?
P750,000
P500,000
P250,000
P225,000
a.
b.
с.
d.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How much would you invest today in order to receive $30,000 in each of the following? (for further instructions on present value in Excel, see the Suggested Resources in the textbook: https://cnx.org/contents/kg0cimBs@14.13:bDQCmuJO@6/Suggested-Resources) a. 10 years at 9% b. 8 years at 12% c. 14 years at 15% d. 19 years at 18%
F3
How do I solve this accounting question?
find the expected return for investing in buildings in a metro area where the following three buildings are for sale: The cost of the building is $4 million, the total rents are $500,000 and the total expenses are $300,000. The cost of the building is $90 million, the total rents are $35 million and the total expenses are $24 million. The cost of the building is $21 million, the total rents are $6 million and the total expenses are $3 million..
Hi There! I solved the problem, but can you correct my written formula to get a total of $90,691.36 please, the answer I got is italicized and underlined below. Please also answer the questions, and put everything on an excel spreadsheet and show the formulas please for all of the questions below. Thank You! You are offered the opportunity to put some money away for retirement. You will receive 10 annual payments of $5,000 each beginning in 26 years. If you desire an annual interest rate of 12% compounded monthly, answer the following two questions: How much would you be willing to invest today? How much would the money (that you will be willing to invest today) be worth at the end of your last payment (i.e., in year 35)? Amount that you would be willing to invest today = PV = $5,000/(1.01)26*12 + $5,000/(1.101)27*12 + $5,000/(1.01)28*12 + $5,000/(1.01)29*12 + $5,000/(1.01)30*12 + $5,000/(1.01)31*12 + $5,000/(1.01)32*12 + $5,000/(1.01)33*12 + $5,000/(1.01)34*12 +…
I need help solving this problem below on excel. Suppose you purchased equipment and agreed to pay the manufacturer $100,000 in 4 years for the equipment. What should you record the cost of the equipment today if your cost of capital is 5%?
You are an angel investor, and 4 entrepreneurs have approached you to build some innovative folding tables, and the proposals are as follows. Project A, an investment of 566967 and annual cash flows respectively of 415527, 209635, 199906 and 298311. Project B, an investment of 439043 and annual cash flows respectively of 417004, 150449, 117975 and 384645. Project C, an investment of 628001 and annual cash flows respectively of 140108, 507720, 225467 and 147962. Project D, an investment of 450834 and annual cash flows respectively of 102735, 111878, 508753 and 154070. If the rate expected by you is 21.33% per year of compound interest. Which project is more profitable according to the NPV (Net Present Value)?Question 1 options: d c a b
I need an explanation for STEP 2. Step 1 is just a reference. Thank you.Step 1. Problem recognition, definition and evaluation A lot more money is being spent by your friend each year than is being received. Expense > Revenue $ 10,500 + $ 15,000 = $ 25,500 > 4 x $360 x 12 month = $ 17,280 $ 25,500 > $ 17,280 ( variance $ 8,220 ) The problem could be that the monthly rent is too low. She is losing $ 8,220 per year Step 2. Development of the feasible alternatives Option (1). Raise the rent (Will the market bear an increase?) Option (2) . Lower maintenance expenses (But not so far as to cause safety problems) Option (3). Sell the apartment building. (What about a loss?) Option (4). Abandon the building (Bad for your friend’s reputation)
You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into its systems and is offering to pay you $549,000 today, plus $549,000 at the end of each of the following six years, for permission to do this. If the appropriate interest rate is 6 percent, what is the present value of the cash flow stream that the company is offering you? (Round factor values to 4 decimal places, e.g. 1.5215 and final answer to 2 decimal places, e.g. 15.25.) Present value $
If you receive a grant for a $135,000 project and the grant has a 2:1 match. How much grant money would you receive?
How to solve a problem when they give you the liability amount $120000 and the equity $232k and they ask to fund the total assets?
Bill Williams has the opportunity to invest in project A that costs $6,900today and promises to pay $2,100, $2,400, $2,400, $2,000 and $1,800over the next 5 years. Or, Bill can invest $6,900 in project B that promises to pay $1,500, $1,500, $1,500, $3,600 and $4,000 over the next 5 years. (Hint: For mixed stream cash inflows, calculate cumulative cash inflows on a year-to-year basis until the initial investment is recovered.) a. How long will it take for Bill to recoup his initial investment in project A? b. How long will it take for Bill to recoup his initial investment in project B? c. Using the payback period, which project should Bill choose? d. Do you see any problems with his choice?