Miguel Foods, Inc purchased a patent at the beginning of 2013 for $350,000 . Economic benefits were expected for 7 years, but the patent's legal life was 20 years. Also during 2013, the company incurred research and development costs of $270,000 . Patent amortization expense for 2013 is
a. $11,000
b. $17,500
c. $31,000
d. $50,000
d
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Product costs for a manufacturing company consist of cost of direct materials, direct labor, and overhead
Indicate whether the statement is true or false
Mrs. Heyer inherited real estate from her mother. The mother's basis in the real estate was $382,000, and the fair market value at the date of the mother's death was $900,000. The mother's taxable estate was only $2.4 million, so the estate did not owe any federal estate tax. This year, Mrs. Heyer sold the real estate for $875,000. Compute her gain or loss recognized on sale.
A. $875,000 gain B. $493,000 gain C. $25,000 loss D. $0
The average cost associated with each additional dollar of financing for investment projects is
A) the incremental return. B) the marginal cost of capital. C) the component cost of capital. D) CAPM required return.
There is no need to find out more information about a prospective franchise as the franchisor should be the primary source of information.
Answer the following statement true (T) or false (F)