Amount charged to income-expense and loss

Assignment Help Accounting Basics
Reference no: EM13135713

In January of 2011, Vega Corporation purchased a patent at a cost of $200,000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In 2014, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent. The amount charged to income (expense and loss) in 2014 related to the patent should be:

Reference no: EM13135713

Questions Cloud

The most common misconception concerning the legal system : What do you believe to be the most common misconception concerning the legal system in the United States?
Calculate the manufacturing cost markup needed : Calculate the manufacturing cost markup needed to obtain a target profit of $100,000.
How much is earnings per share for the year : If net income for the year was $75,000 and a preferred stock dividend of $20,000 was paid, what was the beginning value of retained earnings? How much is earnings per share for the year?
Forecast time series for first four months of next year : Forecast this time series for the first 4 months of the next year using the most appropriate method. Defend your choice of forecasting method.
Amount charged to income-expense and loss : The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In 2014, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent. The amount charged to income ..
Using the regression module : Using the regression module of Excel's Add-in Data Analysis, perform 3 simple regressions by regressing overhead costs against each of the proposed independent variables. Show the output for each regression and evaluate each of the regression results..
What is the target cost : Pauw's Pots is considering the production of a new line of pottery. Based on preliminary market research, management has decided that each pot should be priced at $60. Furthermore, management believes that the profit margin should be 40 percent of..
What else might you consider : If you were looking at two companies and one had a large amount of debt and the other didn't, would you choose the one without debt? Always? What else might you consider?
How many units must racer sell in order to break even : A new employee suggests that Racer Industries sponsor a company 10-K as a form of advertising. The cost to sponsor the event is $7,200. How many more units must be sold to cover this cost?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Compute operating income for april, may and june

Mile-High Foods, Inc., was formed in March 2011 to provide prepackaged snack boxes for a new low cost regional airline beginning on April 1.

  What account would be debited and credited

If you received the utility bill for $400 but the bill is not due until the 15th of the following month how would you journalize them? What account would be debited and what would be credited?

  Question regarding capital structure and dividend policy

Tapley Inc. currently has assets of $5 million, zero debt, is in the 40% federal-plus-state tax bracket, has a net income of $1 million, and pays out 40% of its earnings as dividends.

  Allocation of the total cost in the accounting records

A company acquired property that included land, building and equipment for a total cost of $163,000. The land was appraised at $87,500, the building at $35,000, and the equipment at $52,500. What should be the allocation of the total cost in the a..

  What is the reason for the apparent inconsistency

A not-for-profit organization receives a restricted gift. When, and in which type of fund, should it recognize the revenue? When, and in which type of fund, should it recognize the related expense? What is the reason for the apparent inconsistency..

  Examine the concept of financial risk

Examine the concept of financial risk by answering the following questions: (a) How does the risk of a portfolio change as the number of assets in the portfolio increases?

  Short run and long run equilibrium in fishing rod market

How would you predict that the short-run equilibrium that you have identified in question 1 will change? Illustrate your answer using appropriate diagrams. What will be the long-run equilibrium number of fishing rod manufacturers?

  Compute materials price variance

The Elm Institute makes portable tents for hikers. Their tents have a standard materials usage of 4 yards of cloth per tent at $7.00 per yard.

  Finding unit sales price

At Flint Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The unit sales price is:

  How much will ubs lend subaru

Suppose Subaru agrees to repay $500 million at the end of 4 years. How much will UBS lend Subaru?

  Strategies for testing internal controls

Briefly describe three strategies for testing internal controls when information technology is used for significant accounting processing.

  Discuss why a buyer may want to order on a bill

Discuss why a buyer may want to order on a bill and hold basis. Why might a seller want to classify an order as bill and hold if it does not meet the above criteria?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd