On October 1, 2017, Mulcahy, Inc purchased a patent for $100,000 cash
Although the patent gives legal protection for 20 years, it is expected to be used for only eight years. Journalize the amortization expense for 2017. Assume straight-line amortization.
What will be an ideal response
Amortization Expense—Patent 3,125
Patent 3,125
Amortization expense = (Cost - Residual value) / Useful life
Amortization expense = $100,000 / 8 years = $12,500 x 3/12 = $3,125
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The difference between the sample result and true population value is known as __________.
a. level of confidence b. nonsampling error c. acceptable error d. none of these
Which of the following statements is not correct?
A. Temporary differences causing taxable income in future periods to be lower than book income in future periods create deferred tax assets. B. Temporary differences causing taxable income in future periods to be higher than book income in future periods create deferred tax liabilities. C. A permanent difference results when a revenue enters into the determination of book income in one period but affects taxable income in a different period. D. A temporary difference causing book income to be less than taxable income when initially recorded is described as an originating difference.