Answer:
Balance sheet extract:
Intangible assets:
Copyright 1 $0
Copyright 2 $48,000
Explanation:
The points to note in the question are enumerated as follows:
An internally generated intangible asset cannot be capitalized.By capitalization ,I mean its costs is treated as intangible asset to be amortized over its useful life.As a result,the $16,000 incurred on the internally generated intangible asset,specifically,the first copyright should be treated as expense when incurred.
However,the second copyright that was bought from University Press can be treated as asset but cannot be amortized since it has indefinite life,but would be tested for impairment on a yearly basis,with impairment losses charged to profit or loss account.
Answer:
A) DOL = 1.33 times; DFL = 1.80 times; and DCL = 2.4 times
B) Next years expected Earnings before interest and tax = $5.5 million; and Net years expected net income = $2.45 million
C) Next years expected Earnings before interest and tax = $2.5 million; and Net years expected net income = $0.35 million
Explanation:
Note: This platform did allow the explanation to be saved here as it was claiming it contains swearwords. Please, see the attached pdf file for the full answer and explanation.
Answer:
D) No impact on the accounting equation.
Explanation:
- Nothing would happen since the amount to be received would remain the same i-e $20,000, so there is no chance for increase in liabilities. Moreover, the there is no new services so that asset should be impacted.
- What there has been done is just classifying the payment which the Delta thought that they would receive earlier, but now it is being realized that it will take long, so just to not make any mistake or confusion for future this was done.
<span>Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are </span><span>complements in production; by-products. C</span>eteris Paribus<span> is a Latin phrase meaning "all other things remaining equal". It is commonly used in economics. </span>
