Reference no: EM131115085
1. Accounting for Patents, Franchises, and R&D Devon Harris Company has provided information on intangible assets as follows. A patent was purchased from Bradtke Company for $2,500,000 on January 1, 2009. Harris estimated the remaining useful life of the patent to be 10 years. The patent was carried in Bradtke's accounting records at a net book value of $2,000,000 when Bradtke sold it to Harris. During 2010, a franchise was purchased from Greene Company for $580,000. In addition, 5% of revenue from the franchise must be paid to Greene. Revenue from the franchise for 2010 was $2,500,000. Harris estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Harris incurred research and development costs in 2010 as follows. Harris estimates that these costs will be recouped by December 31, 2013. The materials and equipment purchased have no alternative uses. On January 1, 2010, because of recent events in the field, Harris estimates that the remaining life of the patent purchased on January 1, 2009, is only 5 years from January 1, 2010.
(a) Prepare a schedule showing the intangibles section of Harris's balance sheet at December 31, 2010. Show supporting computations in good form.
(b) Prepare a schedule showing the income statement effect for the year ended December 31, 2010, as a result of the facts above. Show supporting computations in good form(AICPA adapted)
|
Estimate the minimum required cash flow before taxes
: A petroleum engineer must estimate the minimum required cash flow before taxes if the cash flow after taxes is $2,000,000. The effective federal tax rate is 35%, and the state tax rate is 4.5%. A total of $1,000,000 in tax-deductible depreciation wil..
|
|
Question regarding the payback comparisons
: Nova Products has a 5-year maximum acceptable payback period. The firm is considering the purchase of a new machine and must choose between two alternative ones.
|
|
Find the required kva rating of a synchronous capacitor
: If a 500-hp, 90% efficient synchronous motor, operating at full load and 0.8 leading power factor, is added instead of the capacitor in part (a), calculate the resulting power factor.
|
|
Determine percentage of total revenue expended on taxes
: A division of Hanes has the following data at the end of a year. For an effective federal tax rate of 35% and state tax rate of 6.5%, determine (a) CFAT,(b) percentage of total revenue expended on taxes, (c) net income for the year.
|
|
Prepare a schedule showing the intangibles section
: Prepare a schedule showing the intangibles section of Harris's balance sheet at December 31, 2010. Show supporting computations in good form.
|
|
Critically assess and examine the csr of mcdonalds
: Critically assess and examine the CSR of McDonalds. Analyze McDonald's ethical environment; and discuss the impact this has upon its business behavior and performance.
|
|
What kind of measures would you recommend
: What kind of measures would you recommend so that GM can maintain its market share in Spain?
|
|
Characterize capitalist society
: How do defenders of capitalism respond to critics who point to the profound economic inequalities that characterize capitalist society?
|
|
What percent of gross income is consumed by federal taxes
: Adam and Eve submit a married-filing-jointly return to the IRS. During the year their two jobs provided them with a combined income of $123,000. They had their second child during the year, and they plan to use the standard deduction of $9500 applica..
|