Determining Carrying Value and Amortization of Intangible Assets

Review the following information pertaining to Denzel Company.

1. A patent was purchased on January 2, 2018, for $149,500 when the remaining legal life was 16 years. On January 2, 2020, Denzel determined that the remaining useful life of the patent was only eight years from the date of its acquisition.
2. On January 1, 2020, Denzel Company purchased a second patent for $184,000 cash. At January 1, 2020, 6 years of the patent's legal life of 20 years had already expired.
3. On June 30, 2020, Denzel Company paid a firm $18,400 for a new trademark. Denzel considers the life of the trademark to be indefinite.
4. On November 1, 2020, Denzel Company acquired all noncash assets and assumed all liabilities of Lee Company at a cash purchase price of $276,000. Denzel determined that the fair value of the identfiable net assets acquired in the transaction is $269,100.

Note: When answering the following questions, do not round until your final answer. Round your final answer to the nearest whole number.

Required

a. What is the carrying value of intangible assets on December 31, 2020? Assume no impairment losses were recognized in prior periods.

$Answer

b. What is amortization expense for 2020?

$Answer

For each of the following transactions that occurred during the year, indicate the dollar amount to be reported as a current liability as of December 31, 2020. (Enter 0 for amounts if no current liability is to be reported. Do not leave any answer field blank.)

In 2020, Ibran Corp. required additional cash for its business. Management decided to use accounts receivable to raise the additional cash and has asked you to determine the income statement effects of the following transactions:

1. On July 1, 2020, Ibran assigned $600,000 of accounts receivable to Provincial Finance Corporation as security for a loan. Ibran received an advance from Provincial Finance of 90% of the assigned accounts receivable less a commission of 3% on the advance. Before December 31, 2020, Ibran collected $220,000 on the assigned accounts receivable, and remitted $232,720 to Provincial Finance. Of the latter amount, $12,720 was interest on the advance from Provincial Finance.

2. On December 1, 2020, Ibran sold $300,000 of accounts receivable to Wunsch Corp. for $275,000. The receivables were sold outright on a without recourse basis and Ibran has no continuing interest in the receivables.

3. On December 31, 2020, an advance of $120,000 was received from First Bank by pledging $160,000 of Ibran's accounts receivable. Ibran's first payment to First Bank is due on January 30, 2021. Instructions a. Prepare a schedule showing the income statement effects of 1004 these transactions for the year ended December 31, 2020.

Instructions
a. Prepare a schedule showing the income statement effects of
these transactions for the year ended December 31, 2020.

The following transactions relate to Academy Towing Service. Assume the transactions for the purchase of the wrecker and any capital improvements occur on January 1 of each year. 2016 1. Acquired $79,000 cash from the issue of common stock. 2. Purchased a used wrecker for $41,000. It has an estimated useful life of three years and a $10,000 salvage value. 3. Paid sales tax on the wrecker of $5,000. 4. Collected $65,100 in towing fees. 5. Paid $12,900 for gasoline and oil. 6. Recorded straight-line depreciation on the wrecker for 2016. 7. Closed the revenue and expense accounts to Retained Earnings at the end of 2016. 2017 1. Paid for a tune-up for the wrecker’s engine, $1,800. 2. Bought four new tires, $2,150. 3. Collected $71,000 in towing fees. 4. Paid $18,900 for gasoline and oil. 5. Recorded straight-line depreciation for 2017. 6. Closed the revenue and expense accounts to Retained Earnings at the end of 2017. 2018 1. Paid to overhaul the wrecker’s engine, $5,700, which extended the life of the wrecker to a total of four years. The salvage value did not change. 2. Paid for gasoline and oil, $20,000. 3. Collected $74,000 in towing fees. 4. Recorded straight-line depreciation for 2018. 5. Closed the revenue and expense accounts at the end of 2018

1. What accounts for the unusual properties of the heart of a shrew? In other words, why is the shrew’s heart unusually large with an unusually slow heart rate?
2. What are the three general components of a circulatory system? Describe the functions of a cardiovascular system.
3. What are the limitations of Diffusion?
4. Describe the 3 main types of pumping structures in animal circulatory systems?
5. Distinguish between open and closed circulatory systems. Is the distinction between open and closed circulatory systems always clear? Distinguish among interstitial fluids, blood, lymph, and hemolymph.
6. Compare and contrast hemocytes found in insects and vertebrates.
7. Describe composition and functions of plasma?
8. Describe functions of the five types of leukocytes?
9. Describe the structure and function of erythrocytes?
10. Describe the structure and function of platelets?
11. How do sponges, cnidarians, and flatworms manage without a circulatory system?
12. Describe the circulatory system of an oligochaete?
13. Compare and contrast the circulatory system of a bivalve and a cephalopod?
14. Compare and contrast the structure and function of the circulatory systems of a branchiopod crustacean and a decapod crustacean?
15. Describe the five common features of crustacean heart?
16. How is the hear of Daphnia magnus different than the typical crustacean heart?
17. Describe the structure and function of the insect circulatory system.
18. Do all animals have a circulatory system? (explain)
19. Closed circulatory systems are usually found in high active organisms with high demands for oxygen or in those living in oxygen limited environments. What is the main exception to this general rule? (explain)

1.

In 2020, Elaine paid $2,440 of tuition and $1,160 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband.

What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.)

Elaine’s AGI is $88,000.

What is the American opportunity tax credit?

2. In 2020, Laureen is currently single. She paid $2,400 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,400 each for a total of $4,800). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,750 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,250 for herself to attend seminars at a community college to help her improve her job skills. (Leave no answer blank. Enter zero if applicable.)

a. What is the maximum amount of education credits Laureen can claim for these expenditures? Laureen's AGI is $45,000. If Laureen claims education credits for her three children and herself, how much credit is she allowed to claim in total? If she claims education credits for her children, how much of her children’s tuition costs that do not generate credits may she deduct as for AGI expenses?

-American opportunity tax credit? _______

Lifetime learning credit?_______

For AGI deduction?_______

3.In 2020, Laureen is currently single. She paid $2,400 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,400 each for a total of $4,800). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,750 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,250 for herself to attend seminars at a community college to help her improve her job skills.

b. Laureen’s AGI is $95,000. What is the maximum amount of education deductions Laureen can claim to the extent the costs don’t generate a credit?

For AGI deduction?_______

4.
In 2020, Laureen is currently single. She paid $2,400 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,400 each for a total of $4,800). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,750 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,250 for herself to attend seminars at a community college to help her improve her job skills. (Leave no answer blank. Enter zero if applicable.)

c. Laureen’s AGI is $45,000 and Laureen paid $12,100 (not $1,750) for Ryan to attend graduate school (i.e., his fifth year, not his junior year).

-American opportunity tax credit? _______

Lifetime learning credit?_______

5.This year Luke has calculated his gross tax liability at $2,240. Luke is entitled to a $3,060 nonrefundable personal tax credit, a $1,830 business tax credit, and a $820 refundable personal tax credit. In addition, Luke has had $2,850 of income taxes withheld from his salary. (Input the amount as a positive value.)

What is Luke’s net tax due or refund?

6.

In 2020, Zach is single with no dependents. He is not claimed as a dependent on another’s return. All of his income is from salary and he does not have any for AGI deductions.

What is his earned income credit in the following alternative scenarios? Use Exhibit 8-10. (Round your intermediate calculations to whole dollar amount. Round your final answer to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

d. Zach is 24 years old and his AGI is $4,100.

What is the earned income credit?_____

7.

Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company.

What amount of child and dependent care credit can Julie claim in each of the following alternative scenarios? Use Exhibit 8-9

a. Julie paid $2,180 to the day care center and her AGI is $50,000

What is the child & dependent care credit?___

1. Do social media adequately substitute for traditional friends?
2. If Lane’s ideas are implemented, what would be effect on our economy?
3. How could his ideas be done in our society? What political changes would be needed
4. What do you think about consumption and happiness? Consumption and depression?
5. What is the nature of the ideal state? What would its goals be?
6. How would its economy work?
7. What types of laws would it have? E.g., related to information security and privacy
8. How would it deal with technology progress? Technology at service of people or people at service of technology. Government funding/sponsorship of research and development
9. Is the most efficient solution necessarily the best?
10. What should be done about H1-B visas?

KFA is considering investing in a new drone technology costing $12 million. It has a 5 year life (no salvage value) and will save KFA $3.5 million/year in pre-tax operating costs. It will need an up-front working capital investment of $300,000. KFA's cost of capital is 8.0% and its tax rate is 21.0%. Their current technology has a $5 million book value but a $1 million salvage value. What are the NPV and IRR of the decision to replace the old technology?

15- When someone accepts the cultural goals of society but rejects the institutionalized means for achieving them, this is referred to by Merton as:

Conformity


Innovation


Ritualism


Retreatism

16- According to Currie (1997), Market Societies are:

seen in all capitalist societies


seen only in capitalist societies that are out of balance because market principles overwhelm both family and social values


seen in societies with compassionate capitalism


None of the Above

17- In the article by Currie (1997), it is argued that the “systematic ____” is the most destructive feature of market societies.

weakening of public supports


assault on steady livelihood


trickling-down of wealth


weakening of our borders

18- In lecture it was discussed that Cloward and Ohlin (1963) argued that middle class youth had:

better morals than lower class youth


greater access to legitimate opportunities than lower class youth


greater self-control that lower class youth


greater pressures to succeed than lower class youth

19- As discussed in lecture, Sharkey (2013) revealed that FHA loans in the 1950s:

subsidized White outmigration from inner-cities


subsidized the integration of suburbia by encouraging racially integrated neighborhoods


helped expand equal opportunities to everyone


discouraged the use of restrictive covenants

20- Instead of changing the structure of society by ____, Cazenave (2007) argues that many of the programs initiated during the War on Poverty focused on ____.

expanding work training, creating new job opportunities in the inner city


expanding education, structural change


expanding opportunities, changing individuals


democratic means, communist revolution

21- A state of normlessness is captured by the term:

Imbalance


Criminal


Anomie


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