Abc developed a new horse transport device and incurred research and development costs of
$250,000. rather than continue with their own research, abc decided to purchase a patent for a similar design from vail, inc. for $350,000. what are the total assets and expenses for these developments?
a. assets $600,000; expenses $0. b) assets $250,000; expenses $350,000.
c) assets $350,000; expenses $250,000. d) assets $0; expenses $600,000.

The correct option is C

Explanation:

In developing the horse transport device, the expense or the cost which is incurred amounts to $250,000, therefore, the expense amounts to $250,000. Whereas, the ABC decided to purchase a patent for $350,000, patent is an intangible asset because the patent does not have any physical substance and provide the business a long term value. Therefore, it is an asset which worth $350,000.

Hence, Assets is $350,000 and Expense is $250,000.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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