When Scranton Tools Bought Tipton Hardware, Included in the Purchase

question 127

Multiple Choice

When Scranton Tools bought Tipton Hardware, included in the purchase price was a patent valued at $26,000. The patent still has 10 years remaining of its legal life. However, it is estimated that the useful life of the patent is only 8 years. The journal entry to record the annual patent amortization expense would include a

• A) Debit to Amortization Expense, patent for $2,600
• B) Credit to Patent for $2,600
• C) Debit to Amortization Expense, patent for $3,250
• D) Debit to Patent for $3,250

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Definitions:

Null Hypotheses

A hypothesis that there is no significant difference or effect and any observed difference is due to chance.

Research Hypotheses

Predictive assertions by scientists about the connection between multiple variables.

F Statistic

A statistic used to determine the ratio of two variances to test the hypothesis of equal variances.

Pairwise Comparisons

Statistical analyses involving the comparison of all possible pairs in a group to determine if significant differences exist between them.