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An engineering firm acquired a patent on January 1, 20x1 for $140,000. The patent had an original legal life of 20 years. On January 20X1,

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An engineering firm acquired a patent on January 1, 20x1 for $140,000. The patent had an original legal life of 20 years. On January 20X1, when the patent was acquired, it had a remaining legal life of 8 years. This patent is expected to be of value to the firm's operations for the next 4 years, through December 31, 20X5. What will be the book or carrying value of the intangible asset Patent net of patient amortization on the firm's statement of financial position as of December 31, 20X37 a $50,000 O. 570.000 c. 535,000 d. 5105,000 Answer: Patentcost........ $140,000 Less: Patent amortization through December 31, 20x10 105.000 Patent book value (net of amortization) on 12/31/20X3..... 35.000 "The patient is amortized over the shorter of its legal life January 1, 20X1 (years) or its estimated economic life on the same date (4 years). Therefore, the patient's cost of $140,000 is divided by 4 years for annual patent amortization expense of $35,000. Patent amortization through 12/31/20X3 - 3 years x 835,000 $105,000 Question Completion Status: Fashion Retailers, Inc, declared a dividend of 5.60 a share on 100,000 shares of outstanding stock on December 17, 20X4 to shareholders of record on December 28, 20X4, payable on January 12, 20X5. Which answer choice below best describes the effect of the dividend on the accounts of Fashion Retailer's Inc. on the payment date? a The asset account "Cash" will decrease by 560,000 and the liability account "Dividends Payable" will decrease by $60,000. b. The asset account "Cash" will decrease by $60,000 and the contra-equity account "Dividends" (which increases the equity account "Retained earnings) will increase by $60,000. Oc. The liability account "Dividends payable" will decrease by $60,000 and the contra-equity account "Dividends" (which decreases the equity account "Retained earnings") will increase by $60,000. d. The liability account "Dividends payable" will increase by $60,000 and the contra-equity account "Dividends" (which decreases the equity account "Retained earnings") will increase by 560,000. QUESTION 30 1 points Which of the following types of account is not a temporary equity account? a Revenues b. Expenses c. Dividends. d. Retained earnings

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