Tran Technologies licenses its functional intellectual property to Lyon Industries. Terms of the arrangement require Lyon to pay Tran $500,000 on April 1, 2021, when Lyon first obtains access to Tran’s intellectual property, and then in the future to pay Tran a royalty of 4% of future sales of products that utilize that intellectual property. Tran anticipates receiving sales-based royalties of $1,000,000 during 2021 and $1,500,000/year for the years 2022–2026. Assume Tran accounts for the Lyon license as a right of use, because Tran’s actions subsequent to April 1, 2021, will affect the benefits that Lyon receives from access to Tran’s intellectual property.
Required:
1. Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Identify the specific nine-digit Codification citation (XXX-XX-XX-XX) for accounting for variable consideration arising from sales-based royalties on licenses of intellectual property, and consider the relevant GAAP. When can Tran recognize revenue from sales-based royalties associated with the Lyon license?
2. What journal entry would Tran record on April 1, 2021, when it receives the $500,000 payment from Lyon?
3. Assume on December 31, 2021, Tran receives $1,000,000 for all sales-based royalties from Lyon in 2021. What journal entry would Tran record on December 31, 2021, to recognize any revenue that should be recognized in 2021 with respect to the Lyon license that it has not already recognized?
4. Assume Tran accounts for the Lyon license as a five-year right to access Tran’s symbolic intellectual property from April 1, 2021, through March 31, 2026. Tran expects that its ongoing marketing efforts will affect the value of the license to Lyon during the five-year license period. Repeat requirements 2 and 3.
In: Accounting
The following page-reference string:
1, 2, 4, 3, 2, 5, 4, 2, 4, 2, 1, 3, 2, 3, 1, 3, 6, 1, 6, 4.
Main memory with 3 frames of 1 kilobyte available and they are all initially empty. Complete a figure, similar to Figure 8.14(in the slides or textbook), showing the frame allocation for each of the following page replacement policies:
a. Optimal
b. Least recently used
c. First-in-first-out
Then, find the relative performance of each policy with respect to page faults.
In: Computer Science
A=
| 1 | 2 | 4 | 0 | 1 |
| -2 | -1 | 0 | 1 | 2 |
| 0 | 3 | 8 | 1 | 4 |
. Let W denote the row space for A.
(a) Find an orthonormal basis for W and for W⊥.
(b) Compute projW⊥(1 1 1 1 1 ).
In: Advanced Math
|
Benefits of Indexed to CPI (rising to 2%) |
Benefits of Indexed to CPI (rising to 3%) |
||||
|
Year |
(1) Price Index 2010 = 100 |
(2) Nominal Annual Benefit (indexed at 2% per year) |
(3) Real Annual Benefit |
(4) Nominal Annual Benefit (indexed at 2% per year) |
(5) Real Annual Benefit |
|
2006 2007 2008 2009 ....... 2026 |
100.00 102.00 104.04 106.12 148.59 |
SR25000 |
SR25000 |
||
In: Economics
Big Co. owns 60% of Little Co common stock. On 1/1/23 Big Co sold a patent to Little Co for $32,000. The patent had a book value of $20,000 on that date, with a 4 year remaining useful life.
On 5/1/26 Little sells the patent to a third party for $20,000. Little Co reports earnings of $50,000 each year.
Big uses the FULL equity method to account for their investment in Little.
1. How much was the unrealized gain or loss on the sale?
2. How much unrealized gain or loss is carried forward to 2024?
3. What is the "income to the NC Interest" in 2023?
4. In 2026 the patent is sold to some third party. In the elimination entries related to this intercompany sale, what account ["Gain on sale", "Retained earnings", "Non-controlling interest", "Investment in Little", "Investment income"] would be credited, for what amount ["1,000", "2,000", "3,000", "4,000"] ?
In: Accounting
Big Co. owns 60% of Little Co common stock. On 1/1/23 Big Co sold a patent to Little Co for $32,000. The patent had a book value of $20,000 on that date, with a 4 year remaining useful life.
On 5/1/26 Little sells the patent to a third party for $20,000. Little Co reports earnings of $50,000 each year.
Big uses the FULL equity method to account for their investment in Little.
1. How much was the unrealized gain or loss on the sale?
2. How much unrealized gain or loss is carried forward to 2024?
3. What is the "income to the NC Interest" in 2023?
4. In 2026 the patent is sold to some third party. In the elimination entries related to this intercompany sale, what account ["Gain on sale", "Retained earnings", "Non-controlling interest", "Investment in Little", "Investment income"] would be credited, for what amount ["1,000", "2,000", "3,000", "4,000"] ?
In: Accounting
QUESTION 4 (2 + 1 + 2 + 1 + 4 =10 marks)
It is believed that cities tend to attract workers that are better educated. A sample of 610 people were classified by their highest education level (Primary and secondary school, Undergraduate and Postgraduate degree) and whether a person is working in a city or a town. The following information was obtained:
What is the probability that a person, who has completed primary and secondary school as their highest qualification, works in a town. Show your working.
Let the variable Education represent the highest education level and the variable Working Status represent whether a person is working in a city or a town. Name the dependent variable.
We would like to investigate if there is an association between the level of education and whether a person is working in a city or town. What type of test would you conduct and why?
State the appropriate hypotheses statements of the test above.
Assume that we carry out the test above at the 1% level of significance. The test statistic value is 4.75. State the decision rule, decision, and conclusion in the context of this question. (Hint: You can use a critical value approach OR p-value approach to derive your decision)
In: Statistics and Probability
Sanders Co. issued $800,000 of 6% bonds on January 1, 2021, due on January 1, 2026, with interest payable each January 1 and July 1. The bonds were sold to yield 10%. If the discount were amortized by the effective-interest method, what amount of interest expense would Sanders report in 2021 related to the bond?
In: Accounting
Sanders Co. issued $700,000 of 5% bonds on January 1, 2021, due on January 1, 2026, with interest payable each January 1 and July 1. The bonds were sold to yield 10%. If the discount were amortized by the effective-interest method, what amount of interest expense would Sanders report in 2021 related to the bond?
In: Accounting
1. A student borrows $5000 for college from his aunt and uncle on June 1, 2020. He agrees to repay them $500 on 6/1/2021, 6/1/2022, 6/1/2023, and 6/1/2024; plus three additional payments of X on 6/1/2025, 6/1/2026, and 6/1/2027. They agree to an interest rate of 1.5% compounded annually. Find X
2. For the loan described in question #1, write out the amortization schedule for the loan.
Please show steps
Thank You
In: Finance