Xenon Tech acquired a patent on January 1st, 2013, for $26,400. The patent was estimated to have a useful life of 12 years. On July 1st, 2017, the company incurred legal fees of $6,000 to successfully defend the patent in an infringement suit. How much amortization expense will Xenon Tech recognize on the Income Statement for the year ended December 31st, 2017?

Answers

Answer 1
Answer:

Answer:

The amount that will recognize under amortization expenses is $2600.

Explanation:

The first step here would be to calculate the amortization expenses for the first 4 years of the patent, here will use straight line depreciation method,

Formula - original value of asset / useful life in years

              - $26,400 / 12

             - $2200

Now for the 4 years this amount would become $2200 x 4 = $8800

The amount of amortization for the first half of 2017 ( up to 30 June ) would be-

= half of full year expenses

= $2200 / 2

= $1100

So up to 30 June 2017, the expenses are $9900 ( $8800+$1100), So the new book value would be = $26,400 - $9900

            = $16,500

In this $16,500 we will add the amount of legal fees, so the total would be -

$16,500 + $6000

= $22,500

The next step is to divide this value by remaining useful; years which is 7.5,

$22,500 / 7.5

= $3000

Now we will divide this amount by 2 because we have to take out expense for remaining last 6 months of 2017

$3000 / 2

= $1500

Adding the expenses for first and second half of 2017 to take out total amortization expense of 2017 -

$1100 + $1500

= $2600


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Answer:

Strategic leaders can help any airline related issue to be solved

Explanation:

Strategic leaders are needed everywhere. An airline company would indeed benefit from a strategic leader and or manager

9) Selected information regarding a company's most recent quarter follows (all data in thousands). 9) _______ Direct labor $540 Beginning work in process inventory $330 Ending work in process inventory $420 Cost of goods manufactured $1620 Manufacturing overhead $830 What was the cost of direct materials used for the quarter

Answers

Answer:

Direct material= $340

Explanation:

Giving the following information:

Direct labor $540

Beginning work in process inventory $330

Ending work in process inventory $420

Cost of goods manufactured $1620

Manufacturing overhead $830

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Answer:

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Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and expanded rapidly. The following transactions occurred during a recent year (dollars in millions):1. Issued stock for $623 cash (example).
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3. Paid $5,000 in principal and $300 in interest expense on long-term debt.
4. Earned $177,866 in sales revenue; collected $123,949 in cash with the customers owing the rest on their Amazon credit card account.
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9. Borrowed $16,231 in cash as long-term debt.
10. Used inventory costing $111,934 when sold to customers.
11. Paid $830 in income tax recorded as an expense in the prior year.

Required:

For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decrease, and leave blank if no effect) of each transaction.

Answers

Final answer:

This question is a test of understanding accounting principles and how various transactions impact a business's accounts. The student is required to analyze several transactions for Amazon.com, Inc., determining for each one how it affects the company's assets, liabilities, equity, revenue, and expenses.

Explanation:

To respond to this question will require understanding of accounting and financial transactions and the resulting impacts on business accounts, in this case, Amazon.com, Inc. For example, when Amazon issued stock for $623 cash, this increased cash (an asset) by $623 million and equity by the same amount. Buying equipment costing $6320 while paying $4893 in cash and charging the rest on the account reduced cash by $4893 and increased both equipment (another asset) by $6320 and accounts payable (a liability) by $1427 million ($6320 - $4893). Similarly, you can analyze other transactions: principal and interest payments on debt reduce cash and long-term debt or interest expense; generating sales revenue increases revenue and accounts receivable or cash; incurring expenses (e.g., shipping, marketing) increases expense and accounts payable or decreases cash; borrowing cash increases both cash and long-term debt, etc. Understanding the transactions in this way is central to the accounting process, which creates the financial statements that give stakeholders important information about a business's financial health.

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Consider a two-step mortgage for $150,000, 30 years, monthly payments, an initial interest rate of 5%, a cap of 5%, and a single rate adjustment at the end of year 7. Assume that the index rate at the end of year 7 is 5% and the margin is 2%. If the borrower pays an extra $100 with each payment starting in month 85, by how many months will he shorten the term of the loan

Answers

Answer:

Consider the following calculations

Explanation:

This 2-step mortgage problem requires a 2-step solution.

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The discount rate will change to 5% index rate plus 2% margin = 7% at the beginning of the 8th year.

In Step II we first determine the remaining balance at the end of year 7. This requires using the amortization worksheet.

On the TI BA II Plus, AMORT is the secondary function of PV.

Set P1, the periods at which the calculations begin, equal to 1. We cursor down to P2, which is the last period of the calculation, and set it equal to 84. Cursoring down once again, we see that BAL at month 84 = 131,917.52.  

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Jordan (single, age 30), a real estate broker (self-employed), had the following income and expenses: Commission income

180,000

Medical insurance premium paid for his staff

10,000

Office staff salary expense

40,000

Medical insurance premium paid for himself

7,000

Office rental expense

30,000

Unreimbursed medical expenses paid for himself

5,000

Which of the following statement is correct?

A. Jordan will report $93,000 as his business income (from Schedule C) and his AGI is $88,000.
B. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is 93,000.
C. Jordan will report $110,000 as his business income (from Schedule C) and his AGI is $95,870.
D. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $80,935.
E. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $85,935.

Answers

Given:

Commission income  = $180,000

Medical insurance =  $10,000

Salary expense  = $40,000

Medical insurance premium paid for himself  = $7,000

Office rental expense  = $30,000

Medical expenses paid for himself  = 5,000

Computation of business income:

Business income = Total revenue - Total expenses

Business income = $180,000 - ($10,000 - $40,000 - $30,000)

Business income = $180,000 - $80,000

Business income = $100,000

Note: Self-incurred expenses are not included in business expenses.

Computation of AGI:

AGI = Business income - Deduction from schedule c

AGI = $100,000 - Medical insurance premium paid for himself  

AGI = $100,000 - $7,000

AGI = $93,000

Therefore, option "B" is the correct answer to the following question.

Final answer:

Jordan's business income is $100,000 (derived from his commission income minus his business expenses) and his Adjusted Gross Income is $93,000 (calculated as business income minus personal deductions). Hence, Option B is the correct answer.

Explanation:

Jordan's business income can be calculated as his commission income minus his business expenses. His business expenses consists of medical insurance premiums for his staff, office staff salary, and office rental expense. Therefore, his business income would be $180,000 - ($10,000 + $40,000 + $30,000) = $100,000. Adjusted Gross Income (AGI) is calculated as business income minus personal deductions. In Jordan's case, he has a personal deduction of $7,000 (medical insurance premium paid for himself). Thus, his AGI would be $100,000 - $7,000 = $93,000. Therefore, the correct answer is B: Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $93,000.

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