Do fast answer of this general accounting question Thompson Enterprises acquired a franchise from JohnsonCorporation for $480,000. The franchise agreement is fora period of eight years. Thompson uses straight-line toamortize all intangible assets.What would be the reported book value of the franchisethree years after the purchase?a. $180,000b. $300,000c. $360,000d. $480,000

Step 1: Define Book ValueThe book value of an intangible asset refers to its remaining value after…

Answered: Thompson Enterprises acquired a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11EB: The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining...

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The following intangible assets were purchased by Goldstein Corporation: A. A patent with a remaining legal life of twelve years is bought, and Goldstein expects to be able to use it for seven years. B. A copyright with a remaining life of thirty years is purchased, and Goldstein expects to be able to use it for ten years. For each of these situations, determine the useful life over which Goldstein will amortize the intangible assets.
Identify intangible assets in the given problem
1. What is the cost of the right of use asset? 2. What is the depreciation for current year?
Jubilant Company acquired a tract of land containing an extractable natural resource. The entity is required by the purchase contract to restore the land to a condition suitable for recreational use after it had extracted the natural resource. Geological survey indicated that the recoverable reserves will be 2,500,000 tons and that the extraction will be completed in five years. Land Exploration and developmental cost Expected cash flow for restoration cost Credit adjusted risk free interest rate PV of 1 at 10% for 5 periods 9 000 000 1 000 000 1 500 000 10% 0.62
Angels Inc. purchases a piece of equipment for $65,000. The equipment has an expected useful life of five years. Its residual value is estimated to be $5,000. Assuming the firm uses the straight-line depreciation method, what is the depreciation expense on the equipment in the fifth full year? Select one: a. $10,000 b. $12,000 c. $11,000 d. $13,000
Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of P10,000 trade discount 800,000 Non-refundable purchase taxes 20,000 Delivery and handling costs 40,000 Installation costs 30,000 Present value of decommissioning and restoration costs 10,000 1.) How much is the initial cost of the equipment? A. P 890,000 B. P 820,000 C. P 900,000 D. P 870,000
18. Acquisition Cost Cox Company recently purchased a machine by paying $8,500 cash and signing a six-month, 10% note for $10,000. In addition to the purchase price, Cox incurred the following costs related to the machine: freight charges, $800; interest charges, $500; special foundation for machine, $400; installation costs, $1,100. Required: Determine the cost of the machine.
Help please
A company purchased an asset for $3,700.000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent. 44.45 percent, and 14.81 percent, respectively What is the book value of the equipment at the end of the project? Multiple Choice $3.425.830 $274,170 $2.466,790
On January 1, 20X3, Enid Corporation purchased a patent from another company for $190,000. The estimated useful life of the patent is 10 years, and its remaining legal life is 15 years. The amortization expense for 20X3 is: $12,667. $85,000. $68,000. $19,000.
ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65. Installation cost is P50,000. Decommissioning cost is P200,000. Expected useful life is 10 years and effective rate was 12% How much is the initial cost of the equipment? 2,550,000 2,539,395 2,614,395 2,750,000
1. A special manufacturing and handling device was purchased by Alfonso Manufacturing for $200,000 and is depreciated over MACRS. CFBT is estimated to amount to $800,000 for the first 2 years followed by $600,000 thereafter until the asset is retained. The effective tax rate, Te is 35% and interest is 10% per year. In present worth dollars determine the CFAT and determine if it was a viable purchase. (Note answer must be in a tabular format)

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