Solution-What are the amount and nature of the gain

What are the amount and nature of the gain

Assignment Help Accounting Basics

Reference no: EM132672081

Problem - On December 1, 2017, Lavender Manufacturing Company (a corporation) purchased another company's assets, including a patent. The patent was used in Lavender's manufacturing operations; $49,500 was allocated to the patent, and it was amortized at the rate of $275 per month. On July 30, 2019, Lavender sold the patent for $95,000. Twenty months of amortization had been taken on the patent. What are the amount and nature of the gain Lavender recognizes on the disposition of the patent? Prepare your solution using Microsoft Excel (or a similar program). Write a letter to Lavender, discussing the treatment of the gain. Lavender's address is 6734 Grover Street, Boothbay Harbor, ME 04538. The letter should be addressed to Bill Cubit, Controller.

Reference no: EM132672081

Questions Cloud

How much will bernie pay the manufacturer for each bike : How much will Bernie pay the manufacturer for each bike if he orders 10 bikes at a time and takes advantage of the other discounts?

Determine the amount and character of the recognized gain : On August 20, 2018, the building, which then had an adjusted basis of $0, was sold for $545,000. Determine the amount and character of the recognized gain

What the amount allocated to cost of goods sold for july is : July 30 reveals that there are 55 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is

Compute the cost recovery and adjusted basis for building : The store building was 39-year real property, and the straight-line cost recovery method was used. Compute the cost recovery and adjusted basis for building

What are the amount and nature of the gain : Twenty months of amortization had been taken on the patent. What are the amount and nature of the gain Lavender recognizes on the disposition of the patent

Find what is the gross profit for the month : An end of the month (1/31/2022) inventory showed, If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

What would you do if you were providing a psychological test : What would you do if you were providing a psychological test to a counseling client and an issue arose in which your personal ethics were in conflict with.

What should Jinjie do based upon these facts : Jinjie owns two parcels of business land (§ 1231 assets). What should Jinjie do based upon these facts

The field of criminal justice : Explain the main reasons why these three concepts or skills you described are important to someone in the field of criminal justice.

User Account

All Pages

What are the amount and nature of the gain

Reference no: EM132672081

Reference no: EM132672081

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT