Requirement 1 options are all the same

Requirement 2:

The options are all the same.

.

Fill in the blank:

1st blank: not profitable, profitable

2nd blank: $10,400,000 is 32%, $856800 is 8.24%, $1,260,000 is 12.12%

Requirement three:

Blank 1: GPS, hands-free cell phone, patent.

Blank 2 : $2,400,000, $ 1,260,000, $10,400,000

Blank 3: a tangible, an intangible

Blank 4: For 8 years, for 20 years, forever

Blank 5: 8 years, 20 years, indefinite

Blank 6: be amortized on a straight-line basis over 8 years, be amortized over 20 years, not be amortized

Suppose Durtan paid $2.4 million for a patent related to an integrated system, including hands-free cell phone, GPS, and iPod connectivity. The company expects to install this system in its automobiles for eight years. Durtan will sell this as an "extra" for $1,000. In the first year, 10,400 units were sold. All costs per unit totalled $850. Required 1. As the CFO, how would you record transactions relating to the patent in the first year? 2. Prepare the income statement for the integrated system's operations for the first year. Evaluate the profitability of the integrated system's operations. Use an income tax rate of 32%. 3. Explain what items were recorded as assets and why. Requirement 1. As the CFO, how would you record transactions relating to the patent in the first year? Durtan paid $2.4 million for a patent related to an integrated system, including hands-free cell phone, GPS, and iPod connectivity. Record the transaction. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit In the first year, 10,400 units were sold. All costs per unit totalled $850. Record the cost of sales transaction. Journal Entry Date Accounts Debit Credit Durtan will sell the integrated system as an "extra" for $1,000. In the first year, 10,400 units were sold. Record the sale of the integrated systems, assuming all sales were on account. Journal Entry Date Accounts Debit Credit Durtan paid $2.4 million for the patent related to an integrated system and expects to install this system in its automobiles for eight years. Record the amortization of the patent for the first year. (Round the final answer to the nearest whole number.) Journal Entry Date Accounts Debit Credit Requirement 1. As the CFO, how would you record transactions relating to the patent in the first year? Durtan paid $2.4 million for a patent related to an integrated system, including hands-free cell phone, GPS, and iPod connectivity. Record the transaction. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit Accounts Receivable In the first Accumulated Amortization-Patent talled $850. Record the cost of sales transaction. Amortization Expense-Patent Date Debit Credit Cash Cost of Sales Income Tax Expense Durtan wil Income Tax Payable 20. In the first year, 10,400 units were sold. Record the sale of the integrated systems, assuming all sales were on account. Operating Expenses Date Debit Credit Patent Sales Revenue Requirement 2. Prepare the income statement whole dollar.) Income before tax Income Statement - Integrate For Year 1 Accounts payable Accounts receivable Accumulated amortization Amortization expense Eval stem The Cost of goods sold Req Income before tax cord The Income tax expense Other operating expenses Sales revenue Requirement 2. Prepare the income statement for the integrated system's operations for the first year. Evaluate the profitability of the integrated system's operations. Use an income tax rate of 32%. (Round to the nearest whole dollar.) Income before tax Income Statement - Integrated System For Year 1 Gross profit Net income Evaluate the profitability of the integrated system's operations. The integrated system operations were Net income of Requirement 3. Explain what items were recorded as assets and why. The value of V should be recorded as V asset as Durtan has the exclusive right to use it in production Since its expected useful life is it should Requirement 3. Explain what items were recorded as assets and why. The value of should be recorded as asset as Durtan has the exclusive right to use it in production Since its expected useful life is it should