Business, 24.03.2020 00:13 Aethis

Jamison Enterprises acquired a franchise to operate a Good Burger Joint in January, 2013. The cost of the franchise was $360,000 and was estimated to have a limited life of 30 years. Early in the year 2018, the franchise was forced out of business due to lawsuits. Jamison should record which of the following series of expenses to their income statement for the years noted

A) 12,000,
B) 12,000
C) 300,000 from 2013
D) 2014 and 2018 respectively

Answers: 1

Show answers

Answers

Answer from: notashley1703

$12,000 for 2013 and $300,000 for 2018

Explanation:

Jamison Enterprises acquired a franchise to operate a Good Burger Joint in January, 2013. The cost of the franchise was $360,000 and was estimated to have a limited life of 30 years.

Hence the yearly franchise cost at this point is 360,00 / 30 years = $12,000

Early in the year 2018, the franchise was forced out of business due to lawsuits.

At this point the company had only operated for 5 years and have incurred franchise cost to date of 5 years x $12,000 = $60,000

Jamison should record $300,000 ($360,000 - $60,000 to date) balance of the franchise cost in its expenses to their income statement for the years 2018

Answer from: JamesLachoneus

A. $12000

Explanation:

Jamison Enterprises acquired a Franchise, The Franchise license is an Asset to Jamison Enterprises because they expect an inflow economic benefits in the form of Revenue from the use of this Franchise license. The Franchise License has a Useful Life of 30 years

The Franchise License would be amortized over a period of 30 year. Intangible assets like franchise License are amortized over their useful life. The same way we depreciate assets like vehicles over their useful life, Think of amortization as The Depreciation for intangible asset.

Amortization expense incurred each year will be calculated by taking Cost of Franchise License and divide it by 30 which is the useful life of the Franchise license. The amortazation expense incurred each year would be 360 000/30 = $12000

An Expense of $12000 will be will be reported on the Income statement each year from 2013 until 2017, amortization expense for 2018 will be adjusted for the number of months the business operated before closing down.

The series of expense that should be recorded in the income statement each year is $12000

Answer from: Quest

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself

Answer from: Quest

Took the words right out of my fingers

Another question on Business

Business, 22.06.2019 03:00

Working with a word processor requires more than just a knowledge of typing. a good word processor includes a number of tools designed to aid in formatting documents to meet the needs of the reader. in this project you will use your word-processing skills and a basic knowledge of apa style to format a research paper. the skills you will need for this project include the following: adjusting line spacing (double-spacing) breaking text into pages (page break) centering text changing the font, style, and size of the text editing text inserting page numbers inserting a table using spell check

Answers: 1

Answer

Business, 22.06.2019 03:00

Put each of them in order. you are a young entrepreneur with a startup business. you now seek credit from the bank to expand it. what are the steps you will have to take? 1. you support your loan application with relevant documents. 2. you fill out the loan application form at the bank 3. you get an approval for the loan and the money is disbursed to your business account 4. you use the credit to further your business plan. 5. you have an interview with the loan officer and you explain your business plan.

Answers: 1

Answer

Business, 22.06.2019 10:00

University car wash built a deluxe car wash across the street from campus. the new machines cost $219,000 including installation. the company estimates that the equipment will have a residual value of $19,500. university car wash also estimates it will use the machine for six years or about 12,500 total hours. actual use per year was as follows: year hours used 1 3,100 2 1,100 3 1,200 4 2,800 5 2,600 6 1,200 prepare a depreciation schedule for six years using the following methods: 1. straight-line. 2. double-declining-balance. 3. activity-based.

Answers: 1

Answer

Business, 22.06.2019 10:30

Perez, inc., applies the equity method for its 25 percent investment in senior, inc. during 2018, perez sold goods with a 40 percent gross profit to senior, which sold all of these goods in 2018. how should perez report the effect of the intra-entity sale on its 2018 income statement?

Answers: 2

Answer

You know the right answer?

Jamison Enterprises acquired a franchise to operate a Good Burger Joint in January, 2013. The cost o...

Questions