PA9. LO 11.4 For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal ntry to record the expense: A. A patent with a ten-year remaining legal life was purchased for $300,000. The patent will be usable for another eight years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $24,000, but the market value of the patent is $600,000. The company expects to be able to use this patent for all twenty years of its life.

PA9. LO 11.4 For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal ntry to record the expense: A. A patent with a ten-year remaining legal life was purchased for $300,000. The patent will be usable for another eight years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $24,000, but the market value of the patent is $600,000. The company expects to be able to use this patent for all twenty years of its life.

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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Q3: The following table gives the operation cost, maintenance cost and salvage value at the end of every year of a machine whose purchase value is 25,000$. Find the economic life of the machine assuming interest rate, i = 15%. End of Year (n) 1 2 3 4 5 6 7 8 9 10 Cost operation at the end of year ($) 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 Maintenance cost at the end of year ($) 300 400 500 600 700 800 900 1000 1100 1200 Salvage value ate end of the year ($) 9000 8000 7000 6000 5000 4000 3000 2000 1000 500
Qd 110.
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1666
A machine that costs $2522, has a life of 14 years and no scrap value. If money worth 10% then the capitalized cost will be: O $3423.52 O $2793.02 O $5567.22 O $4684.52 O $2162.52 What will be the Future value on an investment account of $9346 compounded semiannually at 8% for 3 years? on O $11871.64 O $11862.27 O $11843.80 O $11858.54 O $11825.67
Give answer with explanation and provide correct and incorrect option explanation
Ef 404.
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2022. During that time, he earned $44,000 of self-employment income. On April 1, 2022, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $178,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year?
Using the following unrelated situations. A. A patent with a 10-year remaining legal life was purchased for $280,000. The patent will be usable for another 8 years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $38,000, but the market value of the patent is $600,000. The company expects to be able to use this patent for all 20 years of its life. Calculate the annual amortization expense. A. $ В. $ Prepare a journal entry to record the expense. If an amount box does not require an entry, leave it blank. A. В. 00
Using the following unrelated situations. A. A patent with a 12-year remaining legal life was purchased for $360,000. The patent will be usable for another 10 years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $24,000, but the market value of the patent is $700,000. The company expects to be able to use this patent for all 16 years of its life. Calculate the annual amortization expense. A. $ B. $ Prepare a journal entry to record the expense. If an amount box does not require an entry, leave it blank. А. Previous 00 B.
A company expects to retire an existing machine at the end of 1993 and will replace it with anew machine for the same task at an estimated cost of P60,000. The old machine is expected tobe sold for P5,000 when it is replaced. To provide for replacement, the company intends todeposit the following amounts in an account earning interest at 8% compounded quarterly:P20,000 at the end of 1990P15,000 at the end of 1991P10,000 at the end of 1992What additional amount is needed at the end of 1993 to purchase the new machine?
13. Ebasan Company acquired a heavy road transporter on January 1, 2015 at a cost of P10,000,000. The estimated useful life is 10 years. On January 1, 2021, the power train requires replacement, as further maintenance is uneconomical due to the off-road time required. The remainder of the vehicle is perfectly roadworthy and is expected to last for the next four years. The cost of the new power train is P4,500,000. Assuming that the original cost of the power train is P3,000,000, the total depreciation expense in 2021 is A. 2,200,000 B. 1,825,000 C. 1,150,000 D. 1,450,000 14. Assuming that the original cost of the power train is not separately identifiable and the appropriate discount rate is 5%, the total depreciation expense in 2021 is A. 1,000,000 B. 2,500,000 C. 2,934,362 D. 1,789,210