Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. lansing company acquires a patent on january 1,

1. Lansing Company acquires a patent on January 1, Year 1, in exchange for a...

90.2K

Verified Solution

Question

Accounting

1. Lansing Company acquires a patent on January 1, Year 1, in exchange for a 3 year noninterest-bearing note of $120,000. There was no established exchange price for the patent and the note has no ready market. The prevailing rate of interest for a note of this type is 8% at the date of the exchange. The imputed interest rate is the prevailing interest rate of 8% The present value interest factor for an amount in 3 years discounted at 8% is 0.79383. What is the amount of the debit to Interest Expense on December 31, Year 3?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Q: The stringent response in bacteria is an example of global regulation that involved sets of___________...

Biology
Q

1. m •   (n • p) 2. (q   ? ~t) • (~m v q) 3.   ~t ?...

Advance Math
Q

7 Which type of exercise will most effectively improve your muscular size strength and endurance...

Biology
Q

Choose the correct answer In a speech in March of 1968 President Johnson revealed that...

Biology
Q

31 A radioactive sample has No active atoms at t 0 If the rate of...

Physics
Q

A bug flying horizontally at 2 3 m s collides and sticks to the end...

Physics
Q

loan res in 2 weeks what is the approximate effective interest rate of the A...

Geometry
Q

Luggage Leah is flying from Boston to Denver with a connection in Chicago. The probability...

Basic Math
Q

Required information Problem 11-40 (LO 11-3, LO 11-4) (Static) (The following information applies to the...

Accounting
Q

The footroves vo the francio sterements nachod the belowing Property and equipment, net (in milionel...

Accounting
Q

ods Sold Budget Data table r 30, 2024 Cash sales, 30% Credit sales, 70% Total...

Accounting
Q

A segment of a company reports the following loss for the year. All $175,000 of...

Accounting