Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

a) Palmiero purchased a patent from Vania Co. for $1,500,000 on January 1, 2010. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2010. During 2012, Palmeiro determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2012?

b) Palmiero bought a franchise from Dougherty Co. on January 1, 2011, for $350,000. The carrying amount of the franchise on Dougherty's books on January 1, 2011 was $500,000. The franchise agreement had an estimated useful life of 30 years. Because Palmiero must enter a competitive bidding at the end of 2020, it is unlikely that the franhchise will be retained beyond 2020. What amount should be amortized for the year ended December 31, 2012?

c) On January 1, 2010, Palmiero incurred organization costs of $275,000. What amount of organization expense should be reported in 2012?

d) Palmiero purchased the license for distribution of a popular consumer product on January 1, 2012, for $150,000. It is expected that this product will generate cash flows for an indefinite period of time. The license has an initial term of 5 years but by paying a nominal fee, Palmiero can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2012?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927382

Have any Question? 


Related Questions in Basic Finance

1 households have a much larger fraction of their savings

1. Households have a much larger fraction of their savings in stocks than in bonds. Can you think of reasons why this is the case? 2. Why might you prefer to lend money to individuals and businesses in your city through ...

1 why must researchers use reliable measures2 why is it

1. Why must researchers use reliable measures? 2. Why is it virtually impossible to eliminate all measurement error from the measures we use in research? 3. What is the relationship between the reliability of a measure a ...

1 locate a research report that contains a replication of

1. Locate a research report that contains a replication of previous research. Identify the purpose of the replication and the type of replication that was used. What are the important findings of the research? 2. Develop ...

1 compare and contrast manufacturing and geographic

1. Compare and contrast manufacturing and geographic postponement. 2. Define and illustrate cash-to-cash conversion, dwell time minimization, and cash spin. How do supply chain strategy and structure impact each? 3. Disc ...

Use the attached document reply format to answer the

Use the attached document (Reply Format) to answer the information below: Brief Description: McDonald's is the world's leading global food service retailer with over 36,000 locations in over 100 countries. More than 80% ...

Class investmentstopic term structure of interest rates

CLASS: Investments TOPIC : Term Structure of Interest Rates: Expectations Theory: Forward and SpotRates. QUESTION: Given the yield on a 7 year zero-coupon bond is 7%, yield on a 2 year strip is 5%, and forward two-year r ...

In the banks perspective should we lend money to amazon or

In the banks perspective, should we lend money to Amazon or not. Look at and analyze Amazon's 10-K form. By looking at Amazon's financial statements, focus on liquidity ratios, profitability, and long term debt. Why shou ...

What is storage why is it risky what role does it play in

What is storage? Why is it risky? What role does it play in the economy? Why is delivery important if so few futures contracts end in delivery? What are the major functions of derivative markets in an economy? Why is spe ...

Name the two ways in which joints loaded in shear resist

Name the two ways in which joints loaded in shear resist loads ? Which kind is slip-critical? Which kind requires control of bolt preload during assembly? What are typical coefficients of friction for slip-critical joint ...

Bernice established a trust for her son val and her

Bernice established a trust for her son Val and her grandson Hunter with $5.5 million. Val will receive the income for life and Hunter will receive the corpus at his father's death. Bernice did not have any remaining GST ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen