The bond's value is $837.213, and it is a discount bond or a premium bond
Solution
Due to that
13%, which is higher than the coupon rate, represents the rate of return.
This indicates that investors expect a return that is greater than the return offered by bonds. As a result, the bond's value drops and it turns into a discount bond.
Now,
Listed below is the bond's value:
[Coupon rate in year 1 / (1 + Investor return)] = Bond value
(1 + Investor return) / (1 + Coupon rate in year 2)
[1 + Investor return / 2 + Coupon rate in year n] Par value + (Investor Return + Par Value)n
Thus,
= [ $100 / (1 + 0.13)1 + $100 / ( 1 + 0.13)
2... $100 / ( 1 + 0.13)10 ] + $1000 / ( 1 + 0.13 ) 10
= $542.62 + 294.58
= $837.21
Bond value will be $837.213.
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true or false: self-employed taxpayers pay the employee portion of the fica tax burden through self-employment taxes, but they are exempt from paying the employer portion.
self-employed taxpayers pay the employee portion of the fica tax burden through self-employment taxes, but they are exempt from paying the employer portion . This statement is false.
Tax payment for self employed?
The practice of working independently rather than for an employer is known as self-employment.If a person chooses to be recognized as a self-employed individual or is generating income for which a tax return must be filed, tax authorities will typically view them as such.The crucial question for tax authorities in the real world is not whether a person is engaged in a business activity—which is still referred to as "trading" when referring to the provision of a service—but rather whether the activity is profitable and, as a result, potentially subject to taxation.To put it another way, the tax authorities generally ignore occasional and hobby- or enthusiast-based economic activity because trading is likely to be ignored if there is no profit.People who work for themselves are typically referred to as sole proprietors (or sole traders), independent contractors, or partners.
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when working with customers, you should always try to keep a positive attitude. why is it important to maintain a positive attitude when working with customers?
The reason it is very necessary for one to be able tp keep a good attitude with the customers is that it would Help to establish a good customer relationship.
What is a positive attitude?This is the term that is used to refer to all of the attitudes that a person that works in a business would have that is able to keep the people that patronize them coming.
These are attitudes that would range from friendliness, open communication and the ability to help the customers to meet the needs that they are after when they are in need of such help.
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the term mass affluent is used to describe multiple choice slower-growing demographic segments in the united states. consumer segments that are primarily motivated by ideals. consumer segments that are primarily motivated by self-expression. households that have between $100,000 and $250,000 in investible assets. households that are generally ignored by financial planning firms.
Households with between $100,000 and $250,000 in investable assets are said to as mass affluent. Mass affluent and growing affluent are the high end of the mass market in marketing and financial services, or those with liquid financial assets between $100,000 and $1,000,000 with an annual family income of more than $75,000 each.
A significant target market for manufacturers of luxury products is the mass wealthy customer. Your bank account balances, certificates of deposit, mutual funds, stocks, and bonds are all examples of investable assets. Funds stored in retirement accounts and insurance contracts having a cash value are both regarded as investable assets.
In the event of a financial emergency, your likelihood of continuing to pay off your debt increases with the amount of investable assets you have. Cash-value insurance contracts and funds stored in retirement accounts are both regarded as investable assets.
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you can determine your net worth by: multiple choice subtracting your assets from your liabilities. incorrect subtracting the value of your home from the mortgage balance. adding your liabilities and assets. subtracting your liabilities from your assets. adding the value of your home to that of your other assets.
Subtracting your liabilities from your assets will give you your net worth. The value of a person's or company's total assets less the value of all of their obligations is their net worth. Any possession you have that has a monetary value counts as an asset in the net worth calculation. Property, collectibles, or any money you have in the bank are typical examples.
A balance sheet is used to track net worth, which is also known as book value in the business world. A balance sheet will include a section for shareholder equity in addition to reporting the overall amount of assets and liabilities (though this variable is not accounted for in the net worth).
You may regularly compare how your finances are doing by determining your net worth on a regular basis (and if they are improving). You can do this as often as you think is best for achieving your financial objectives, such as every six months or a year.
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What type of enforcement do domestic laws use, such as laws in the united states that prohibit murder or theft?.
The type of enforcement domestic laws uses, such as laws in the united states that prohibit murder or theft is vertical.
Enforcement is the right execution of the method of making sure compliance with laws, regulations, guidelines, standards, and social norms.
The enforcement is aware will nation the reasons for action being taken and specify the stairs which the council requires to be taken that allow you to remedy the breach. There's a right of appeal against an enforcement observation.
Enforcement authority approaches the authority to put into effect any law, ordinance, rule, regulation or decision duly followed and observed with the aid of any jurisdiction where the Authority has control authority or where otherwise legal through regulation or by using agreement, settlement, memorandum of know-how, or request for service.
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havermill co. establishes a $280 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated receipts on that date represent $76 for office supplies, $143 for merchandise inventory, and $25 for miscellaneous expenses. the fund has a balance of $36. on october 1, the accountant determines that the fund should be increased by $56. the journal entry to record the reimbursement of the fund on september 30 includes a:
Havermill co. establishes a $280 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated receipts on that date represent $76 for office supplies, $143 for merchandise inventory, and $25 for miscellaneous expenses. the fund has a balance of $36. on october 1, the accountant determines that the fund should be increased by $56. the journal entry to record the reimbursement of the fund on september 30 includes a Journal entries.
A cumulative receipt is one that lists all of the donations made by a donor (or payments, if you're referring to revenue) over the course of the year. It's especially beneficial for people who give frequently.
The cost of finished goods (COGS) that a retailer or wholesaler has on hand to sell to its clients during a specific accounting period is known as merchandise inventory. The price of the books or periodicals a bookshop offers for sale would be considered part of its merchandise inventory.
The balance sheet account that shows the total cost of goods that have not yet been sold is called merchandise inventory. Merchandise inventory serves as a holding account for inventory that is awaiting sale as a current asset.
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which type of salesperson is responsible for finding new customers and securing their business, typically by convincing the prospective customer to drop one or more competitors?
New-business salespeople is responsible for finding new customers and securing their business, typically by convincing the prospective customer to drop one or more competitors
How Important Are Sales In An Organization?Salespeople fill the gap between the product or service that satisfies a client's need and that need itself. It's the role of the salesman to complete the transaction by offering more information and assisting the consumer in making those connections when interacting with prospects who have already been warmed up by marketing and advertising efforts.The development of consumer loyalty and trust in businesses is significantly influenced by sales. The key factors that influence a customer's decision to refer your business to a friend or family member or to leave a positive online review of your goods or services are trust and loyalty.Selling is a powerful activity because it involves interpersonal communication. Never undervalue the impact that a personal connection can have on two people's perceptions of your brand.To learn more about salespersons, refer to https://brainly.com/question/25743891
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breyer company bought inventory from solar company, fob destination. on december 31, the last day of the accounting year, the goods were on a truck owned by common carrier, inc., and not expected to arrive until january 2. which company should include these goods in its december 31 inventory? multiple choice question. none of them should include these goods in inventory common carrier solar breyer
The seller covers the freight expenses when the shipping terms are FOB Destination. 7. The seller's freight expenses for goods being shipped out constitute an operating cost.
A charter is the aggregate of fundamental standards or installed precedents that constitute the legal foundation of a polity, business enterprise, or different form of entity and generally decide how that entity is to be ruled. When those concepts are written down into an unmarried file or set of legal files, those files may be stated to embody a written charter; if they are encompassed in an unmarried comprehensive document, it's far said to embody a codified constitution. The constitution of the UK is a wonderful instance of an uncodified charter; it is instead written in numerous fundamental Acts of a legislature, court docket instances or treaties.
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determine which statements below are correct regarding merchandise available for sale during a period. (check all that apply.)multiple select question.cost of goods sold beginning inventory
The merchandise available for sale during a period correctly corresponds to the initial inventory term.
What is a beginning inventory examples?Beginning inventory is an economic term that refers to products or merchandise that are recorded at the beginning of an accounting year. The initial inventory is the amount of products that you have just before starting the process of selling them, it is the point of reference to compare the variations that may arise as a result of the sale.
What is the beginning inventory for?Initial inventory is a very important process when we want to start a business. In this inventory we must include all the goods that are our property and the products that we have available to sell. This will allow us to know how much we have sold, when we should contact our supplier to request more product and even when we are losing.
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You have been hired as ceo of a new company focused on providing home health services. What could you do to establish a strong and positive organizational culture?.
Things one can do to establish a strong and positive organizational culture are as follow:
Create the company's vision, values, and mission.Establish trust among the employees.Maintain consistent clear expectations.Make sure that the employees feel valued and appreciated.When a company has a positive workplace culture, the employees are more likely to be engaged in their work, which will make the overall mood of the workplace, as well as the productivity, better for everyone involved in the company.
To create a positive workplace culture, one must understand how their workplace work first. A strategy that works in a company might not work in another company because they have a different ethos or work styles.
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beverly frickel purchased 100 shares of gleason systems stock for $32.50 per share. her commission for this purchase was $25. she sold the stock two years later for $45 per share and a commission of $40. what was beverly's total dollar return on this stock? multiple choice $1,100 $1,185 $1,500 $3,275 $4,460
If Beverly Frickel purchased 100 shares of Gleason Systems stock for $32.50 per share, Beverly's total dollar return on this stock is $1,335. The total dollar return on the stock is the actual rate of return of an investment over a time period.
The total dollar return on the stock could be obtained by using the formula given below:
Total return=Number of shares(Stock per share-Dividend+ Beginning stock per share)-(Commission+ Ending commission)
Now by plugging in the formula,
Where , Total return = 100($45 +$1.50 - $32.50) - ($25 + $40)
Total return=100($14)-$65 and Total return=$1,400-$65
Resultantly, Total return = $1,335
Therefore, Beverly's total dollar return on this stock is $1,335.
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suppose there are 500 stock market investors trying to predict whether the market will go up and down, and each year exactly half of them guess right. approximately how many of these investors, on average, will be right seven years in a row?
If 500 stock market investors are trying to predict whether the market will go up or down and exactly half of them guess right each year, approximately 3 of these investors, on average, will be right seven years in a row.
To be calculated:
The total No. of investors that are right 7 years in a row.
Given:
No. of investors trying to predict = 500
The ratio of No. of investors that are right to no. investors that are trying to predict = 250/500
= 1/2
= 0.5
No. of years = 7
Formula to be used:
No. of investors trying to predict x (The ratio of No. of investors that are right to no. investors that are trying to predict)^No. of years = Investors that are right in those years
500 x (0.5)^7 = 500 x 0.0078 = 3.9
So, only 3 investors on average will be right in seven years.
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for financial reporting, the lower of cost or net realizable value approach can be applied to (select all that apply.) multiple select question. the entire inventory. groups of inventory items. individual inventory items. only to inventory purchased during the current year.
The net realizable value approach can be applied to groups of inventory items; the entire inventory; individual inventory items.
Inventory must be documented at the lesser cost or the rate at which it can be sold in accordance with the lesser cost or net realizable value principle. A product's net realizable value is its expected selling price less the expenses related to its production, marketing, and delivery.
Thus, inventory should be written down to its net realizable value if it is recorded in the accounting records at a value higher than its net realizable value. Selling price less completion, disposal, and transportation expenses equal net realizable value. It is possible to apply the lower of cost and net realizable value to specific inventory items, logical categories of inventory, or the entire inventory.
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which of the following bonds has the most price risk? a. 7-year bonds with a 5% coupon b. 3-year bonds with a 5% coupon c. 15-year zero coupon bonds d. 15-year bonds with a 10% coupon group of answer choices a d c b
15-year zero coupon bonds has the most price risk. Bond ownership carries the following risks: Risk number one: Bond prices increase when interest rates decline.
Risk number two is being forced to reinvest profits at a lower rate than they were previously earning. Risk #3: The Bonds may have a negative rate of return when inflation spikes sharply. Inflation can reduce the value of a bond's returns prices in the same way that it reduces the purchasing power of money. Fixed bonds, which have an interest rate determined from the beginning, are the most affected by inflation risk, Interest rate risk.
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maurice would like to own a train store and operate it by himself. he has enough money to open it and operate it on his own and elects to do so. what form of business is this?
A sole proprietorship is a company that is owned and operated by just one person, and in which there is no legal separation between the owner of the company and the company itself. It's the most straightforward way to run the company.
Explain about the Sole proprietorship?A sole proprietorship is simple to set up and offers you total management over your company. If you conduct business operations but don't register as any other type of business, you are automatically regarded as a sole proprietorship.
A sole proprietorship has many advantages, including little paperwork and inexpensive setup. There is also how simple it is to maintain. It's actually the simplest and least expensive form of business you may start, according to the SBA.
A person who runs an unincorporated business alone is known as a sole proprietor. However, if you want to operate your domestic limited liability company (LLC) as a lone member.
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a system that dynamically links buyers and sellers into a rich communication network to establish and reinforce long-term, profitable relationships is called
Customer relationship management (CRM) refers to a system that dynamically connects customers and sellers into a robust communication network in order to create and maintain long-term, lucrative partnerships.
Write a brief account on Customer relationship management.In order to manage and evaluate customer interactions and data across the customer lifecycle, businesses use a variety of practices, strategies, and technologies known as customer relationship management (CRM). The objective is to strengthen interactions with customers in order to promote client retention and increase sales. CRM systems collect data from a variety of customer points of contact, including the company website, company phone number, direct mail, marketing materials, and social media. CRM systems can also provide employees who work with customers with comprehensive knowledge of their personal information, purchase history, shopping preferences, and problems.
Salesforce, Microsoft, SAP, and Oracle are the companies that predominantly market CRM solutions. Other service providers are well-liked by small and medium-sized organisations.
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question 3 as a project manager, you choose the best project management methodology for your team and ensure they adhere to it throughout the project. what project management responsibility does this represent?
The project management responsibility does this represent Help teammates adopt the right workflows and project management styles.
How do you pick the most effective project management approach?The objectives of stakeholders and clients.
how much time you have left before the deadline.
The project's anticipated budget.
Which project management approach is most popular?Important Path Method (CMP)
Project Management for Critical Chains.
Lean.
Six Sigma Technique
Programming in extremes (XP)
Scrum.
PRINCE2.
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which section of an issp should outline a specific methodology for the review and modification of the issp? a. policy review and modification b. limitations of liability c. systems management d. statement of purpose
The section of Policy review and modification of an ISSP should outline a specific methodology for the review and modification of the ISSP.
What is ISSP ?The Information System Security Plan (ISSP) should include a set of guidelines or behavior as well as completely identify and define the controls that are already in place or are planned for the system. System security certification has a key criterion that an ISSP must exist and be followed. The ISSP's goal is to outline the security needs of the system, identify the controls that are in place or being considered for satisfying those requirements, and define the roles and acceptable conduct for all users.
When finished, an ISSP will include technical details regarding the system, its security requirements, and policies put in place to provide defense against its risks and vulnerabilities.
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By supporting drivers with benefits such as mobile repair and a no-fee bank account with grocery and gas discounts, lyft would be the result of using what service characteristic?.
Lyft would be the result of using custom contact service characteristics by supporting drivers with benefits such as mobile repair and a no-fee bank account with grocery and gas discounts.
Lyft, Inc., headquartered in San Francisco, California, provides mobility as a service, ride-hailing, vehicles for hire, motorized scooters, a bicycle-sharing system, rental cars, and food delivery throughout the United States and select Canadian cities.
It is a platform that connects drivers with people and businesses in need of rides. In addition to assisting passengers in getting from point A to point B, drivers in certain markets may choose to deliver essential items such as groceries, medical supplies, and household necessities to people in need.
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related industries create the probability that new companies will enter the market. this competition and forces existing firms to improve . group of answer choices decreases; sales increases; efficiency decreases; efficiency decreases; innovation
As related industries create the probability that new companies will enter the market. This increases competition and forces existing firms to improve their efficacy.
What is known as a competition?In economics, a competition means a situation in the market in which firms or sellers independently strive for the patronage of buyers in order to achieve a particular business objective such as when profits, sales or market share.
A situation where there are many sellers of an undifferentiated product, then, a competition is considered to be high. If there are few sellers, then, the competition is low. But If there is a single seller, then, the market is considered a monopoly.
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berry co. purchases a patent on january 1, 2021, for $41,000 and the patent has an expected useful life of five years with no residual value. assuming berry co. uses the straight-line method, what is the carrying value of the patent on december 31, 2022? multiple choice
The amortization expense for the year ended December 31, 2016 are $7600
$38000/5=$7600
The cost of long-term assets (such computers and automobiles) over the course of their use is taken into account by amortization charges. They are listed on an organization's income statement and are also known as depreciation expenses.
An account on the income statement that affects profit and loss is amortization costs. Accumulated amortization, a counter account on the balance sheet that nets against the amortized asset, is the offsetting entry.
The line item for unamortized intangible assets is below it, followed by the line item for net amount of intangible assets. Accumulated amortization is represented on the balance sheet as a contra asset account.
Every accounting period's depreciation or amortization is calculated and recorded as an expense on the income statement. This expense falls under the operating expense category if the asset is used for essential business operations.
Amortization is the process of realising an intangible asset's value over time. It is comparable to depreciation, however depreciation refers more to tangible assets.
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Praiya earned $26. 25 for 3. 5 hours of dog sitting. If praiya charges the same amount per hour, how much would she earn in dollars and cents for 8 hours of dog sitting?.
Pet sitting visits last 30 minutes and cost $25 on average. They also include food, fresh water, and a bathroom break.
Prices vary depending on the pet sitter's proximity to the pet owner, whether the pet needs to be picked up and put off, and other factors. You must spend $10 for each extra dog if you have more than one pet.
On average, pet sitting costs $20 per day. Obviously, there are a number of factors that can change the cost, such as if you require a pet taxi to pick up and drop off your pet. The cost is for one dog, cat, or bird; for each additional pet, the cost increases by $10.
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if an organization does not yet have social media content and followers, what can it do to help identify its target markets? more than one answer may be correct.
Answer:
rattttt
Explanation:
in a perfectly competitive industry the market price is $25. a firm is currently producing 10,000 units of output; average total cost is $28, marginal cost is $20, and average variable cost is $20. the firm should a. raise price because the firm is losing money. b. keep output the same because the firm is producing at minimum average variable cost. c. produce more because the next unit of output increases profit by $5. d. produce less because the next unit of output decreased profit by $3. e. shut down because the firm is losing money.
The firm should produce more because the next unit of output increases profit by $5.
The firm should produce more output to maximize its profit. In a perfectly competitive industry, firms will have marginal revenue equal to price.
Option C is correct.
What is a perfectly competitive industry?In,a perfect competition all companies sells identical products, market share doesn't influence price, companies are able to enter or exit without any barriers, buyers have perfect information, and companies can't determine prices.
What are the characteristics of a perfectly competitive industry?The three characteristics of perfect competition are
(1) no company holds a substantial market share,
(2) the industry output is standardized, and
(3) there is free entry and exit.
The best market equilibrium in a perfect competition is where marginal revenue is equals to marginal cost.
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Swathmore clothing corporation grants its customers 30 days’ credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 2% times the amount of credit sales for the month. At the fiscal year-end of december 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly.
Bad Debt Expense for 2018 is 85,080. In 2018 journal Account Receivable(net) would appear as 587,920.
The journal entry is as follows-
Bad debt expense 80,400
Allowance for uncollectible accounts 80,400
Allowance for uncollectible accounts 45,000
Accounts receivable 45,00
2.
Bad debt expense 4,680
Allowance for uncollectible accounts 4,680
3a.
Bad Debt Expense for 2018 = 85,080
3b. In 2018 journal-
Account Receivable(net) . 587,920
Here is the complete question-
At the end of 2017, accounts receivable were $586,000 and the allowance account had a credit balance of $50,000. Accounts receivable activity for 2018 was as follows:
Beginning balance $ 586,000
Credit sales 2,680,000
Collections (2,543,000 )
Write-offs (45,000 )
Ending balance $ 678,000
Summary
Age Group Amount Percent Uncollectible
0-60 days $ 400,000 4 %
61-90 days 95,000 15
91-120 days 55,000 25
Over 120 days 128,000 36
Total $ 678,000
Required:
1. Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year.
2. Prepare the necessary year-end adjusting entry for bad debt expense.
3-a. What is total bad debt expense for 2018?
3-b. How would accounts receivable appear in the 2018 balance sheet?
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describe the effect of the adjusting entry to show the earned amount of a previously recorded unearned revenue on the income statement and on the balance sheet by choosing the correct statements below. (check all that apply.)
The adjusting entry has the following effects: 1-Reduced total liabilities, 2-Increased net income, 3-Reduced unearned revenue liability, 4-Increased revenue account.
A revenue account is a balance-positive account. It includes all of the government's revenue collections, commonly referred to as current collections. Tax receipts and other government receipts are included in these receipts. Tax revenues are the money collected by the government via the imposition of direct and indirect taxes and charges. Direct taxes include corporate tax, income tax, and others. Service tax, excise duty, and customs duty are examples of indirect taxes.
Other revenue come from sources such as interest, dividends, profits from public sector entities, fees, fines, and so forth. Included in revenue expenditures are costs that are not used to build assets or pay off creditors. Basically, these encompass the government's ongoing expenses.
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if the subject matter of a contractual offer is destroyed, what is the status of the offer? multiple choice question. there is no change. all parties must continue with their contractual obligations. the offeror is liable for a breach of contract for allowing the destruction. the offer is immediately terminated. the offer is converted to an option contract to allow parties to find substitute consideration.
The status of the offer when the subject matter of a contractual offer is destroyed is there is no charge. It is because a contract is discharged and no party is liable to perform.
In law of contract, offer can be described as a promise that one party makes in exchange for another party's performance. There are several main part of contractual offer, such as:
Consideration, that can be described as a something of value was promised in exchange for the specified action or nonaction. Offer, that can be described as one of the parties made a promise to do or refrain from doing some specified action in the future.Acceptance, that can be described as the offer was accepted unambiguously.Learn more about contract here https://brainly.com/question/2669219
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if investment spending decreases and all other levels of spending remain constant then aggregate: group of answer choices supply increases supply decreases demand increases demand decreases
If investment spending decreases and all other levels of spending remain constant, then aggregate Demand decreases.
What is Demand?
Demand simply means a consumer's desire to buy goods and services without any hesitation and pay the price for it.
In simple words, demand is the number of goods that the customers are ready and willing to buy at several prices during a given time frame.
The different types of demand are as follows:
Individual and Market DemandOrganization and Industry DemandAutonomous and Derived Demand Demand for Perishable and Durable GoodsShort-term and Long-term DemandWhat are the factors of demand?
Market factors affecting demand of consumer goods:
Price of product.Tastes and preferences.Consumer's income.Availability of substitutes.Number of consumers in the market.Consumer's expectations.Elasticity vs. inelasticity.To learn more about Demand from the given link
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you are currently thinking abouyt investing in a stock priced at $25.00 per share. the stock recently paid a dividend of $2.50, and its dividend is expected to grow at a rate of 6 percent for the foreseeable future. you normally require a return of 16 percent on stocks of similar risk. is the stock overpriced, underpriced, or correctly priced?
The stock is underpriced.
Underpricing is the act of submitting an initial public offering at a cost that is lower than its market rate. If an additional supply concludes its initial trading day over the set price, it is seen to have been underpriced.
Intrinisic value of the stock = Expected dividend/ ( Return - Growth Rate)
Thus,
Expected dividend = Recent Dividend × / ( 1 + Growth Rate)
= 2.5 × ( 1 + 0.6)
= 2.5 × 1.06
= 2.65
Return = 16%
= 0.16
Growth rate = 6%
= 0.06
Therefore, the Intrinisic value of the stock
= 2.65/ ( 0.16 - 0.06)
= 2.65/ 0.1
= 26.5
Since the actual price of the stock is $25.00 per share, the stock is underpriced.
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casa corp. purchased a patent for $600,000 on january 1, 2007. the patent is being amortized over its remaining legal life of 15 years expiring on january 1, 2022. during 2011, casa determined that the appropriate estimate of the life of the economic benefits of the patent was 12 years from the date of acquisition. what amount should casa report in its balance sheet at december 30, 2011 for the patent, net of accumulated depreciation?
The accumulated depreciation after considering the revised life of patent will be $320,000.
Patent = Purchase Price / Remaining Life
Patent = $600,000 / 15 years
Patent = $40,000
New carrying amount = Purchase Price - Accumulated Amortization
New carrying amount = $600,000 - ($40,000*3)
New carrying amount = $600,000 - $120,000 = $480,000
New amortization = New carrying amount / Revised Life
New amortization = $480,000/3
New amortization = $160,000
Patent at December 30,2011 = New carrying amount - new amortization
Patent at December 31,2011 = $480,000 -$160,000
Patent at December 31,2011 = $320,000
An innovation is granted an exclusive privilege known as a patent. In other terms, a patent is an exclusive right to a good or a method that typically gives a fresh approach to a task or a novel technical solution to a challenge.
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