On January 1 of the Current Year, Dentux Corp

question 786

Multiple Choice

On January 1 of the current year, Dentux Corp. purchases a patent from another corporation for $600,000. The patent has a remaining life of 10 years. The patent is the only asset purchased from that corporation. Also on January 1, Dentux purchases all of the assets of Fenton Corp. Included in the Fenton assets acquired is a patent worth $300,000 that has a 10- year remaining life. What is the allowable amortization deduction on the two patents?

• A) $160,000
• B) $60,000
• C) $90,000
• D) $80,000

Calculate and interpret the need for action based on discrepancies between desired and actual performance.

Recognize the control equation and its components.

Identify and apply the four steps of the control process.

Distinguish between output and input standards.

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Definitions:

Intangibility

A characteristic of services that means they cannot be seen, touched, or made tangible in the same way physical products can be.

Consumers

Individuals or groups who purchase products or services for personal use rather than for manufacturing or resale.

Evaluate

The act of judging the value or condition of something in a careful and thoughtful way, typically for decision-making purposes.

Intangibility

A characteristic of services that cannot be physically touched or seen before the purchase decision, making them difficult to evaluate beforehand.