Larkspur Industries had one patent recorded on its books as of January 1, 2020. This patent had a book value of $460,800 and a remaining useful life of 8 years. During 2020, Larkspur incurred research and development costs of $96,000 and brought a patent infringement suit against a competitor. On December 1, 2020, Larkspur received the good news that its patent was valid and that its competitor could not use the process Larkspur had patented. The company incurred $102,000 to defend this patent. At what amount should patent(s) be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805