Question

31)

Amazing Company acquires a trade name from Fantastic Ltd. Amazing estimates it will receive

$7,200 per year from the name over the next 9 years. The first payment would be received at the

end of the first year. Using a discount rate of 4%, what is the value in use to Amazing of this

trade name?

a.

$45,528

b.

$58,398

c.

$53,534

d.

$55,676