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On January 1, 2024 Eagle Corp. purchased a patent for a drug from Bobcat Inc. for $600,000.  Bobcat Inc. had already used the patent for 8 years at the time Eagle Corp. purchased it.  Assuming Eagle Corp. plans to use the patent for the full legal life, calculate the amount of amortization expense that Eagle Corp. would record each year of the patent’s life.

In the selection from The Prairie, Nathaniel  

On January 1, 2024, Eagle Corp. issued $6 million, 10 year, 8% bonds with interest to be paid annually.  Eagle Corp. issued the bonds for $6,504,953 since the market rate of interest was 6% on the issue date.  What is the total amount of interest expense that Eagle Corp. should report on its December 31, 2025 income statement? (round to the nearest dollar)   Answer:  $_______

Eagle Corp.’s 2024 income statement reported total revenues of $550,000 and total expenses of $515,000 (including $30,000 of depreciation).  The 2024 comparative balance sheet reported the following: cash- beginning balance, $50,000 and ending balance, $55,000; accounts receivable- beginning balance, $45,000 and ending balance $60,000; inventory- beginning balance, $58,000 and ending balance, $45,000; Equipment- beginning balance, $225,000 and ending balance, $200,000; accounts payable- beginning balance, $50,000 and ending balance $55,000.  In addition to this information, Eagle Corp. also reported a $10,000 loss on the sale of equipment.  Therefore, based only on this information, 2024 net cash inflow from operating activities was:

The following account balances were extracted from the accounting records of Eagle Corp. at the end of the year:   Accounts Receivable  $1,104,000 Allowance for Uncollectible Accounts (Credit)  $39,000 Uncollectible-Account Expense  $63,000   What is the net realizable value of the accounts receivable?   Answer:  $_______

John Smith wants to retire in 15 years.  He anticipates he will need $2,000,000 to retire.  John has an account that currently pays 5% compounded annually.  If John has $750,000 in his account today how much additional money must he deposit in the account today to have $2,000,000 when he retires (use the appropriate factor table to answer the question and round the the nearest dollar).  Answer:  $_______

Eagle Corp. purchased land, buildings and equipment for 900,000. The land has been appraised at $250,000, the buildings at $650,000 and the equipment at $100,000. The journal entry to record this transaction will include a debit to buildings for: (round to the nearest dollar): Answer:  $_______

A company purchased bonds on July 1, 2024, for $274,885 and intend to hold the bonds until maturity. This price represents a market rate of 6% on bonds that have a face amount of $250,000, have a stated rate of 8%, pay semiannual interest, and mature in 6 years. Calculate the amortized cost of the bonds as of December 31, 2024 (round to the nearest dollar).   Answer:  $_______

On January 1, 2024, the beginning balance in the Warranty Liability account was $65,000. Cash sales for the year totaled $900,000 and credit sales totaled $300,000.  The company estimates warranty costs at 6% of sales. During the year, $75,000 was paid to settle warranty claims. As a result of these transactions, what is the amount of warranty liability that is reported on the company’s 2024 year end balance sheet?   Answer:  $_______

Eagle Corp. acquired 30% interest in the voting stock of Bobcat Inc. for $650,000.  During the first year, Bobcat Inc. reported net income of $240,000 and paid cash dividends totaling $60,000.  What amount will Eagle Corp. report on its income statement related to its investment in Bobcat Inc?