KUI Company Owns a Copyright with an Estimated 10-Year Useful

question 198

Multiple Choice

KUI Company owns a copyright with an estimated 10-year useful life,a zero salvage value,and an historical cost of $20,000.What is the effect on net income of making the proper adjusting entry at year-end?

• A)The adjustment will decrease net income by $20,000.
• B)The adjustment will increase net income by $2,000.
• C)The adjustment will decrease net income by $2,000.
• D)The adjustment will have no affect on net income,but it will reduce net operating cash flows by $2,000.

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Definitions:

Intimate

Closely acquainted or associated, often referring to personal or private relationships.

Middle Age

A period of human adulthood that typically spans from the mid-40s to the mid-60s, marking a transition between young adulthood and old age.

Life-events

Significant occurrences in a person's life which can have profound effects on their psychological and emotional state.

Psychosocial

Pertaining to the interrelation of social factors and individual thought and behavior.