If you are unable to complete the first part of the question, make an assumption and carry
Note that this may not necessarily mean full points for the remainder of the question.
January 2, 2004, Koll, Inc. purchased a patent for a new consumer product
for $180,000. At the time of purchase, the patent was valid for 15 years; however,
the patent’s useful life was estimated to be only 10 years due to the competitive
nature of the product. On December 31, 2007, the product was permanently
withdrawn from sale under governmental order because of a potential health
hazard in the product. What amount should Koll charge against income during
2007, assuming amortization is recorded at the end of each year?
(2 pt) Quirk Corp.'s payroll for the pay period ended October 31, 2007 is
summarized as follows:
Amount of Wages Subject
to Payroll Taxes
Assume the following payroll tax rates:
F.I.C.A. for employer and employee
What amount should Quirk accrue as its share of payroll taxes in its October 31,
2007 balance sheet?