Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2021, for $4 million. The patent will be used for five years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $200,000 at the end of five years. Compute Granite's patent amortization for 2021, assuming the straight-line method is used.

$3,800,000

Explanation:

The computation of amortization is shown below:-

Purchase commitment of $200,000 is treated as the residual value of the patent

Amortization = Acquired vale of patent - the residual value of the patent

= $4,000,000 - $200,000

= $3,800,000

Therefore for computing the amortization we simply subtract the residual value of the patent from an acquired value of patent.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.