Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

intangible asset transaction PART IV Problem Set PS5-5 MANGIBLEASSELIRANSACTONS (9 points) Instructions: Complete the requirements situations. specified for each of the following independend During 2013,

image text in transcribed

intangible asset transaction

PART IV Problem Set PS5-5 MANGIBLEASSELIRANSACTONS (9 points) Instructions: Complete the requirements situations. specified for each of the following independend During 2013, produce a solar cell for Sunbolt Corporation incurred $120,000 of research and development costs to motorcycles. It then paid filing fees of $6,800 to register a patent on product and $23,000 to an attorney who helped obtain the patent. In late 2013 shortly Deiore Sunbolt put the solar cell into production, it was sued by another company claiming own the ghts to the patent. Sunbolt paid $40,700 to dfend the patent against infringement has a legal life of 20 years and a useful life of 15 years. How much is patent y the competitor and won the suit. Production of solar computers began on January 1. 2014 amortization expense for 2014? 2. Super Tech Industries purchased Jones, Inc. on June 30, 2014 and recorded goodwill of $62,000 on this purchase. The useful life of the goodwill is estimated to be 20 years. How much is goodwill amortization expense for 2014? PART V_ RATIO ANALYSIS (16 points) Jiffy Mart and Quick Shop are two companies of roughly he same size both running a chain of convenience stores. Each company depreciates its plant assets using the straight-line method. An investigation of their financial statements reveals the following information: Quick Shop $ 129,800 1,100,000 5,490,000 1,900,000 Jiffy Mart Net income Sales revenue Total assets (average) Plant assets (average) $ 129,050 890,000 4,340,000 1,650,000 Instructions: Complete the requirements specified for each of the following independent situations. Round answers to two decimal places. 1. For each company, calculate: A. B. C. Return on assets Profit margin Asset turnover 2. Based on your calculations in part 1, comment on the relative effectiveness of the two companies in using their assets to generate sales. What factors complicate your ability to compare the two companies? PART IV Problem Set PS5-5 MANGIBLEASSELIRANSACTONS (9 points) Instructions: Complete the requirements situations. specified for each of the following independend During 2013, produce a solar cell for Sunbolt Corporation incurred $120,000 of research and development costs to motorcycles. It then paid filing fees of $6,800 to register a patent on product and $23,000 to an attorney who helped obtain the patent. In late 2013 shortly Deiore Sunbolt put the solar cell into production, it was sued by another company claiming own the ghts to the patent. Sunbolt paid $40,700 to dfend the patent against infringement has a legal life of 20 years and a useful life of 15 years. How much is patent y the competitor and won the suit. Production of solar computers began on January 1. 2014 amortization expense for 2014? 2. Super Tech Industries purchased Jones, Inc. on June 30, 2014 and recorded goodwill of $62,000 on this purchase. The useful life of the goodwill is estimated to be 20 years. How much is goodwill amortization expense for 2014? PART V_ RATIO ANALYSIS (16 points) Jiffy Mart and Quick Shop are two companies of roughly he same size both running a chain of convenience stores. Each company depreciates its plant assets using the straight-line method. An investigation of their financial statements reveals the following information: Quick Shop $ 129,800 1,100,000 5,490,000 1,900,000 Jiffy Mart Net income Sales revenue Total assets (average) Plant assets (average) $ 129,050 890,000 4,340,000 1,650,000 Instructions: Complete the requirements specified for each of the following independent situations. Round answers to two decimal places. 1. For each company, calculate: A. B. C. Return on assets Profit margin Asset turnover 2. Based on your calculations in part 1, comment on the relative effectiveness of the two companies in using their assets to generate sales. What factors complicate your ability to compare the two companies

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Art And Science Of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser-Hogeterp

11th Edition

0132088061, 978-0132088060

More Books

Students also viewed these Accounting questions

Question

Explain why households do not hold diversified portfolios.

Answered: 1 week ago

Question

6. Explain what causes unsafe acts.

Answered: 1 week ago