Suppose Durtan paid $2.4 million for a patent related to an integrated system, including hands-free cell...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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. 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 should be recorde ar $10,400,000 is 32% $856,800 is 8.24% $1,260,000 is 12.12% Requirement 3. Explain what items were recorded as assets and why. The v 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 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. 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 should be recorde ar $10,400,000 is 32% $856,800 is 8.24% $1,260,000 is 12.12% Requirement 3. Explain what items were recorded as assets and why. The v 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
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Date General Journal Debit Credit 1 Patent Cash 2400000 2400000 2 Cash 1000 x ... View the full answer
Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
Posted Date:
Students also viewed these accounting questions
-
Suppose Murask paid $2.6 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...
-
How would you record the proceeds received from the combined issuance by a corporation of shares of common stock with shares of preferred stock?
-
How would you record the following transactions in Malaysias BOP? Example: (aa) Malaysian authority pays for a container of Pfizer-BioNTech COVID-19 vaccines to Pfizer Inc. of US. Provide your answer...
-
DrinkOh Limited uses an application service provider to process its payroll. Its employees enter their hours using their smart phones. The payroll clerk collects the smart phone data and transmits it...
-
Suppose the average speeds of passenger trains traveling from Newark, New Jersey, to Philadelphia, Pennsylvania, are normally distributed, with a mean average speed of 88 miles per hour and a...
-
Suspension cables are used to carry gondolas at ski resorts. (See Figure 5.14) Consider a suspension cable that includes an unsupported span of 3020 m. Calculate the amount of stretch in the steel...
-
Brand Value Advertisements Pty Ltd, a marketing firm, uses a job order costing system to charge its clients. The firm specialises in marketing work for small local businesses in Melbourne such as...
-
Refer to the information in Exercise 22 for Wyoming Wholesale. a. Using the least squares method, develop the equation for predicting weekly receiving report costs based on the number of shipments...
-
Ronald Robert has spent much of the last few years gambling and playing soccer in Chicago. He has been largely unemployed during that period. About two years ago, however, he got his act together and...
-
It is now January 2018. The year 2017 finished well. The finalized year-end financial statements for 2017 are provided in the excel file associated with this assignment. Randolf and Tenisa at Comfy...
-
A stock is currently trading at $100; its annual volatility is 0.28, and the risk-free interest rate is 12% per annum with continuous compounding. Answer the questions below using a two-step binomial...
-
The molar volume, in [cm3/mol], of a binary mixture of ethanol (1) and ethylene glycol (2) at 25C is given in the following table. Using the graphical method, determine the partial molar volume of...
-
A wave on a rope is given by \(f(x, t)=(0.750 \mathrm{~cm}) \cos \pi\left[\left(4.00 \mathrm{~m}^{-1} ight) x-\left(4.50 \mathrm{~s}^{-1} ight) t ight]\) Calculate the (a) wavelength, (b) angular...
-
After graduating from college in 2000, Justin Gold spent a year in California before settling in Boulder, Colorado. He waited tables to pay the rent and enjoyed outdoor activities including hiking,...
-
This chapter introduced the families of processes with schematics of some of them. Good images of many processes can be found on the internet. Use the internet to find images for the following: a....
-
You are watching a large ripple tank and observed that the waves generated by a mechanical motor have a period of \(3.5 \mathrm{~s}\) and the distance between two adjacent crests is \(15...
-
On June 9, 2022, U. U. B. Mason Company received three sales orders from customers. The sales orders were sent to the appropriate department for credit approval. U. U. B. Mason Company's credit...
-
3M Company reports the following financial statement amounts in its 10-K report: a. Compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017. (Receivables turnover and...
-
Consider an asset that costs $120 today. You are going to hold it for 1 year and then sell it. Suppose that there is a 25 percent chance that it will be worth $100 in a year, a 25 percent chance that...
-
Based on the information in this chapter, contrast the economic growth rates of the United States and China over the last 25 years. How does the real GDP per capita of China compare with that of the...
-
Explain how the bank panics of 1930 to 1933 produced a decline in the nations money supply. Why are such panics highly unlikely today?
-
Let \(X_{1}, X_{2}, \ldots, X_{50}\) be independent and let each have the same marginal distribution with mean -5 and variance 8 . Find (a) \(E\left(X_{1}+X_{2}+\cdots+X_{50} ight)\); (b)...
-
If \(X_{1}\) has mean -5 and variance 3 while \(X_{2}\) has mean 1 and variance 4 , and the two are independent, find (a) \(E\left(3 X_{1}+5 X_{2}+2 ight)\); (b) \(\operatorname{Var}\left(3 X_{1}+5...
-
Correlation between points and penalty minutes for all 24 players with at least 10 games played for the 2014-2015 Ottawa Senators NHL hockey team. The data are given in Table 3.4 and the full data...
Study smarter with the SolutionInn App