Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1.  Malrom Manufacturing Company obtained a patent on manufacturing process on January 1, 2006 for $10,000,000. It was expected to have 10 year life and no residual value. Malrom utilizes straight-line amortization for patents. On December 31, 2007, expected future cash flows expected from patent were expected to be $800,000 per year for next eight years. Present value of these cash flows, discounted at Malrom's market interest rate, is $4,800,000. At what amount must the patent be carried on the December 31, 2007 balance sheet?

a. $10,000,000

b. $8,000,000

c. $6,400,000

d. $4,800,000

2. ABC Corporation obtained End-of-the-World Products on January 1, 2008 for $2,000,000, and recorded goodwill of $375,000 as the result of that purchase. At December 31, 2008, End-of-the-World Products Division had fair value of $1,700,000. Net identifiable assets of Division (excluding goodwill) had fair value of $1,450,000 at that time. What amount of loss on impairment of goodwill mustABC record in 2008?

a. $ -0-

b. $125,000

c. $175,000

d. $300,000

3. Fleming Corporation obtained Out-of-Sight Products on January 1, 2008 for $4,000,000, and recorded goodwill of $750,000 as the result of that purchase. At December 31, 2008, the Out-of-Sight Products Division had fair value of $3,400,000. Net identifiable assets of Division (excluding goodwill) had fair value of $2,900,000 at that time. What amount of loss on impairment of goodwill must Fleming record in 2008?

a. $ -0-

b. $250,000

c. $350,000

d. $600,000

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M922558

Have any Question? 


Related Questions in Accounting Basics

Accounting assignment1 in the context of present value

Accounting Assignment 1. In the context of present value analysis, what is the discount rate? How does the discount rate affect the present value calculation? If the present value of a future return is calculated using a ...

Assignmentas my town is very small and i was unable to find

Assignment As my town is very small and I was unable to find the CAFR, but I was able to find reports for my nearest city (and the one I work in), Concord, NH, for the fiscal year ending June 30, 2015. One thing that I f ...

Valley care medical center expects projects x and y to

Valley Care Medical Center expects Projects X and Y to generate the following cash flows:   Givens (in '000s) Years                  0 1 2 3 4 5 1 Initial investment                              ($7,500)       2 Net oper ...

1 what is the difference between a significant deficiency

1) What is the difference between a significant deficiency and a material weakness as it relates to internal Control? How does the presence of one material deficiency affect the auditor's report on internal controls unde ...

Assignment - you are an investment analystas the cfo of

Assignment - You Are an Investment Analyst As the CFO of your corporation, you are in charge of preparing and analyzing financial statements that will be presented to potential investors and creditors. However, before yo ...

1 the accounting equation is assets liabilities owners

1. The accounting equation is assets = liabilities + owner's equity. Please explain the relationship between economic resources and claims to economic resources. Why must this equation always balance? What transactions i ...

Case title the website launchyour company meddevice inc has

Case Title: The Website Launch Your Company, MedDevice, Inc., has just received FDA 510(k) clearance of its new, cutting edge medical device which paves the way for the official product launch in a few short months. Your ...

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 acquisition accounting to a real-world example. Requirements for the assignment: Each student will select ...

1 the prices of financial assets are based on the expected

1. The prices of financial assets are based on the expected value of future cash flows, discount rate, and past dividends. A. True B. False 2. By using different discount rates, the market allocates capital to companies ...

Milestone three guidelinesoverview the final project for

Milestone Three Guidelines Overview: The final project for this course is the creation of a portfolio consisting of a report and spreadsheets. You will be placed in a real-world scenario in which you will take the role o ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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