On october 1 of the current year, lee corporation enters negotiations with kay corporation to acquire a patent. the patent has 10 years remaining on its legal life.
a. if lee corporation purchases the patent for $36,000, how much amortization expense may lee corporation deduct in the current year?
b. assume that lee corporation purchases all of the assets of kay corporation for $510,000. all of the identifiable assets of kay corporation have a fair market value of $420,000, including the patent, which has a fair market value of $36,000. also, a covenant not to compete for 3 years costing $72,000 is included in the purchase agreement. how much amortization expense may lee corporation deduct in the current year?

Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.

When partners own different portions of the business, the terms should be stated clearly in what document? the articles of incorporation the executive summary the business summary the partnership agreement

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be: