Danube, Toggle, and ConnectOn rely on various intangible assets to operate their businesses. These companies amortize the cost ofthese assets using the straight-line method over the following average estimated useful lives (in years), as reported in their annualreports.Type of Intangible AssetDeveloped TechnologyDanube5.4Trade Names5.9Toggle5.610.1ConnectOn3.511.5Customer Relationships5.15.57.5Required:1. Based on these estimates, identify the company that uses the longest periods for amortizing most of its classes of intangible assets.ToggleDanubeConnectOn2. Will these estimates increase or decrease that company's net income relative to its competitors?IncreaseDecrease< Prev5 of 9Next >

Question 2 increase Amortization expense is an operating expense that reduces net earnings.…

Answered: Danube, Toggle, and ConnectOn rely on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(Classification Issues—intangibles) Presented below and on the next page is a list of that could be included in the intangible assets section of the statement of financial position. Investment in a subsidiary company. Timberland, Cost of engineering activity required 10 advance the design of product to the manufacturing stage. Cost of searching for applications of new research findings. Costs incurred in the formation of a corporation. Training costs incurred in start-up of new operation. Purchase cost of a franchise. Goodwill generated internally Cost of testing in search for product alternatives. Goodwill acquired in the purchase of a business. Cost of developing a patent (before achieving economic viability). Cost of purchasing a patent from an inventor. Legal costs incurred in securing a patent. Unrecovered costs of a successful legal suit to protect the patent, Cost of conceptual formulation of possible product alternatives. Cost of purchasing a copyright. Development costs…
Required information [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $28,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Straight-Line Depreciation Choose Numerator: Choose Denominator: Annual Depreciation Expense = = Year Annual Depreciation Year 1 Year 2 Year 3 Year 4 Total Depreciation expense WHEREL Year-End Book Value
Oriole Enterprises incurred several costs related to the acquisition of plant assets. Purchase price of land and dilapidated building Real estate broker's commission Demolition costs of dilapidated building Architect's fees and building permits Payments to contract for building construction Purchase of new furniture and equipment Actual interest costs during building construction Actual interest cost after completion of building construction Costs of walks, driveways, and parking lot $228800 O $243760 $248160 $311520 O $263120 14960 19360 21120 765600 65120 118800 105600 48400 At what amount should the land be recorded in Oriole's accounting records?
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E9-13 (Algo) Calculating the Impact of Estimated Useful Lives of Intangible Assets [LO 9-6] Danube, Toggle, and ConnectOn rely on various intangible assets to operate their businesses. These companies amortize the cost of these assets using the straight-line method over the following average estimated useful lives (in years), as reported in their annual reports. es Type of Intangible Asset Developed Technology Customer Relationships Trade Names Danube Toggle ConnectOn 4.0 8.0 2.5 2.5 4.8 2.3 6.4 1.4 3.3 Assume each company spent $820,000 at the beginning of the current year for additional Developed Technology. Because of its proprietary nature, the technology is estimated to have no residual value at the end of its estimated life. Required: Calculate the impact (direction and amount) that the amortization of such expenditures would have on each company's Income from Operations in the current year. (Decreases should be indicated by a minus sign. Do not round intermediate calculations.)…
Cullumber Mart and Ivanhoe Shop are two companies of roughly the same size both running a chain of convenience stores. Each company depreciates its plant assets using the straight-line method. An investigation of their financial statements reveals the following information: Net income? Sales revenue Total assets (average) Plant assets (average) A. Return on assets Cullumber Mart B. Asset turnover. $166,656 1,139,200 5,555,200 2,112,000 For each company, calculate: (Round answers to 2 decimal places, e.g. 52.75) Cullumber Mart Ivanhoe Shop $169,360 1,408,000 7,027,200 2,432,000 Ivanhoe Shop
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Situation II During 2022, Pearl SA constructed and manufactured certain assets and incurred the following borrowing costs in connecti with those activities. Warehouse constructed for Pearl's own use Special-order machine for sale to unrelated customer, produced according to customer's specifications Inventories routinely manufactured, produced on a repetitive basis Borrowing Costs Incurred The total amount of borrowing cost to be capitalized R$ R$28,200 8,460 7,520 All of these assets required an extended period of time for completion. Assuming the effect of borrowing cost capitalization is material, what is the total amount of borrowing cost to be capitalized?
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $320,000. The machine is expected to last five years and have a salvage value of $60,000. Exercise 10-12 (Algo) Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. Note: Enter all amounts as positive values. Year 1 Year 2 Annual Period Beginning of Period Book Value Depreciation for the Periodi Depreciation Partial Rate Year Depreciation Expense End of Period Accumulated Depreciation $ $ Book Value 05 0 $ 0 0
Loren Company uses many kinds of machines in operations. The entity acquires some machines from others and constructs some machines itself. The following information pertains to a machine constructed by Loren: Cost of material to construct 700,000 Labor cost 430,000 Allocated overhead costs – electricity, factory space, etc. Allocated interest cost of financing machine Cost of installation 220,000 100,000 120,000 Insurance for one year Profit saved by self-construction Safety inspection cost prior to use 20,000 150,000 40,000 What total amount should be capitalized as cost of the machine?
From page 7-2 of the VLN, intangible assets are long term assets and would NOT include: Group of answer choices A. Goodwill B. Natural gas C. Patents D. Copyrights
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