Question

Direct Assurance Company revised the estimates of the useful life of a trademark it had acquired three years earlier. How should Direct account for the change?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Other

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Xylon company manufactures custom made furniture for the local market and produces a line of home fu...

A: Click to see the answer

Q: The following transactions relate to Xolani Spark’s new electrical business, Xolani Electrical, for ...

A: Journal entries are the transactions that are recorded in the primary book. They are chronological i...

Q: Choose the correct. Mattoon, Inc., owns 80 percent of Effingham Company. For the current year, this ...

A: Mattoon, Inc share of consolidated net income = $465,000 No. of common stock outstanding = 100,000  

Q: Preparing a bank reconciliation Jim Root Corporation operates four bowling alleys. The business just...

A: 1. Bank reconciliation Statementat October 31 Particulars Amount Bank:   Balance as per ban...

Q: You are in the train station waiting for your train to arrive. You see a vending machine from where ...

A: Definition:   Contract: Contract is an agreement among two parties or more parties which includes en...

Q: Briefly describe the ratios that can be used to evaluate a company’s ability to sell merchandise inv...

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and m...

Q: Differentiate the effect on EPS of the sale of new shares, a stock dividend or stock split, and the ...

A: Earning per share is computed by dividing the earnings available to the common/equity stock holders ...

Q: Branch Corporation issued $12 million of commercial paper on March 1 on a nine-month note. Interest ...

A:   Date Account Titles and Explanation Debit Credit March 1 Cash $11,190,000   ...

Q: Net pay refers to the amount of take-home pay after taxes and other deductions (healthcare, social s...

A: Net pay is calculated by deducting the tax from the gross salary amount.

Q: Having an issue with this problem. Thank you

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to ...

Q: Choose the correct.Rouge Company’s $250,000 net income for the quarter ended September 30 included t...

A: Click to see the answer

Q: Identify any differences between U.S. GAAP and International Financial Reporting Standards in the tr...

A: Research and development costs: Research and development costs refers to the expenditures spent on r...

Q: John has applied and been approved a licence to operate a casino in Melbourne, which later on he nam...

A: Revenue expenses refer to the periodic expenses that are incurred to generate the revenues. These ar...

Q: There are four conditions that must be met before an auditor can issue a standard unmodified opinion...

A: Click to see the answer

Q: Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its...

A: 1. Estimate the appropriate 12/31/2021 balance for Zuo’s allowance for uncollectible accounts.   ...

Q: AI Barka acquires land for RO 102,000 cash. Additional costs are as follows: New Building RO 25,000 ...

A: Particulars Amount Cash paid RO 102,000 Add: cost of leveling land 1,600         B...

Q: AI Naseeb Co. wrote a check for RO 715 which was correctly paid by the bank However, AI Naseeb incor...

A: Particulars Amount Balance as per book XXXX Add: Overstated check (RO 751 - RO 715) RO 36 Corr...

Q: Analyzing the ability to pay liabilities Big Beautiful Photo Shop has asked you to determine whether...

A: Total Current assets = Cash + Short term investment + Net accounts receivable + Merchandise inventor...

Q: Guna publishing company has three service departments & two operating departments. Selected data...

A: 1. Calculate the overhead cost would be allocated to each operating department if the company used t...

Q: Hving an issue with this problem, Thank you.

A: Differential analysis or incremental analysis is an accounting technique used by management. In this...

Q: Salaries of repair personnel, where one person is needed for every 1,000 machine-hours or less (that...

A: Regression analysis: Regression analysis is that term which is used to understand the relationship b...

Q: Humaid Company had the following information related to January 2020: Cash balance per books, 31/1 R...

A: Bank reconciliation statement: Bank statement is prepared by the bank. The company maintains its own...

Q: Use the following information for Problems 15 through 17.On September 1, 2017, Jensen Company receiv...

A: Jensen received payment on March 1 , 2018 at a price 100000 Canadian dollars. Purchased put option o...

Q: The Polaris Company uses a job-order costing system. The following transactions occurred in October:...

A: Job order costing system is used to collect and assign manufacturing costs to the units of a particu...

Q: Explain the accounting treatment required when a change is made to the estimated service life of equ...

A: .                

Q: List three key provisions of the Sarbanes-Oxley Act of 2002. Order your list from most important to ...

A:  

Q: I don't know why I did the quick ratio incorrectly.

A: Quick ratio:   Quick ratio, also called as acid-test ratio, denotes that this ratio is a more rigor...

Q: What is the typical focus of responsibility reports for cost centers, revenue centers, and profit ce...

A: Definition:   Responsibility Centre: A responsibility center is used to show the financial performan...

Q: The Cutting Department of Karachi Carpet Company provides the following data for January. Assume tha...

A: Click to see the answer

Q: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Plato Corp. i...

A: Click to see the answer

Q: Flagstad Inc. presented the following data. Net income $2,500,000 Preferred stock: 50,000 sha...

A: Weighted average outstanding Common stock = (750,000 + 300,000*8/12 - 150,000*5/12)*2/1 = 1,775,000 ...

Q: Classified Electronics has an unfunded retiree health care plan. Each of the company’s three employe...

A: 1. Expected postretirement benefit obligation at the end of 2021 = Present value of retirement  bene...

Q: How do loans from partners affect the distribution of assets in a partnership liquidation?

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed ...

Q: Describe the estimation of the allowance based on expected cash flows.

A: Estimation of the allowance based on the expected cash flows is as follows: Companies normally evalu...

Q: Evaluating a stock as an investment Data for Oxford State Bank follow Data for Oxford State Bank fol...

A:  

Q: Accounting Question

A: Differential analysis or incremental analysis is an accounting technique used by management. In this...

Q: Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two me...

A: Immediate payment = $2,600,000 Present value of annual payment = Annual payment x PVIAF (8%, 15 year...