Deductible patent amortization expense

Q: Temporary differences result in future taxable or deductible amounts when the related asset or…

A: Temporary differences result from timing differences between the recognition of income and expenses…

Q: is amortization of patent included in statement of costs of goods manufactured?

A: The income earned by a corporation after deducting the direct costs of manufacturing its products is…

Q: If the residual value of a leased asset is guaranteed by a third party:

A: A lease is an arrangement under which a lessor agrees to allow a lessee to control the use of…

Q: What rate is used when computing the present value of the new liability arising from modification of…

A: Present value represents the worth of money is more than in the future for the same amount.

Q: How is compensation expense computed using the fair value approach?

A: The fair value method records the compensation for stock option transactions at fair value of the…

Q: Under what conditions should a contingent liability berecorded?

A:

Q: For each of the following unrelated situations, calculate the annual amortization expense and…

A: a. Amortization expense for patent = Purchase cost / commercially exploitable life = $350,000 / 8…

Q: Which of the following is not considered as a characteristic of a liability?

A: The balance sheet comprises two-part, what the company owns (Assets) and what the company owes…

Q: hy should emission allowance be recognised as an intangible asset and measured at f

A: Intangible assets are those which do not have any kind of physical existence and but they still have…

Q: What situations cause us to remeasure a lease liability and right-of-use asset How is that…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: Multiple Choice Question) For the purpose of calculating amortization, the costs of defending a…

A: If a corporation spends money on legal fees to successfully protect an intangible asset, such fees…

Q: how to get amortization?

A: Amortisation is an accounting technique used to lower down value of loan amount or intangible assets…

Q: Net defined benefit asset results in Current service cost Interest expense Interest revenue

A: As per IAS 19 of IFRS mentions how the accounting should be done to employee benefit other than…

Q: Risks and benefits of ownership transfer to the lessee with an operating lease. true false

A: Under an operating lease, ownership risks and benefits are not transferred to the lessee.

Q: Explain how the § 179 immediate expensing deduction affects the computation of MACRS cost recovery

A: Tax or Taxes: Tax is an amount paid by the persons (individuals and business entities) to a…

Q: In a case of low value asset exemption, rent paid in advance by the lessee should be treated as O…

A: Rent paid in Advance by the lessee shall be classified as Prepaid Rent.. Option Prepaid Rent is…

Q: Which of the following would not be considered a general long term liability? Select one: a. Long…

A: Short term obligations are the obligations that have to be paid within a  year. whereas, long term…

Q: Define accrued liability

A: Accrued Liability is an expense that was incurred before the end of the current period but has not…

Q: right of use asset and a lease liability on the part of the lessee?

A: Lease -: A Lease is an agreement summarizing the conditions in which one party decides to rent…

Q: Under U.S. GAAP, what is the expense resulting from the increase in the carrying amount of an asset…

A: The objective of the question is to identify the correct expense resulting from the increase in the…

Q: an impairment of a non current asset held for sale:

A: Impairment means generally calculated as Carrying amount minus recoverable value. Any impairment…

Q: How are leases classified for tax purposes?

A: The two main classifications of leases which an affect the tax treatment are Capital Lease or…

Q: All of the following are components of the defined benefit cost except   unvested past service…

A: Defined benefit cost includes: Service cost Expected return on plan assets Change in the effect of…

Q: over what period of time should the cost of a patent aquired by purchased be amortized?

A: Cost of patent acquired by Purchase should be amortized over its useful life which cannot be longer…

Q: Which of the following is an intangible asset that is not typically amortized? a. goodwill b.…

A: Intangible assets: These are long-term assets that are not physical in nature but possess value. The…

Q: Explain Taxable REIT Subsidiaries?

A: Taxable REIT subsidiary (TRS): It may be an organization straightforwardly or by implication…

Q: Define amortization schedule

A: Amortization: Amortization is an accounting method utilized to periodically lesser the book worth of…

Q: Depreciation expense is considered as allowable deduction Select one: True False

A: Depreciation expenditure is the amount depreciated for a specific period (e.g., quarter or year),…

Q: Which of the following intangible assets would not be subject to amortization? Goodwill Patent…

A: An asset that does not have a physical form is known as an intangible asset. It is a long-term…

Q: common fixed expense

A: Total Income = Sales Revenue - Total Variable cost - Total Fixed cost  It is pertinent to note that…

Q: under what conditions a short-term obligation should be excluded from current assets

A: Please find the answer to the above question below:

Q: determine the initial recognition, initial measurement, and subsequent measurement offi nance…

A: The face value of a bond is the fixed maturity value and the coupon is the fixed periodic amount…

Q: What are the definition criteria of an asset and a liability

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is