CA Foundation Exam  >  CA Foundation Questions  >  A company development a technology to enhance... Start Learning for Free
A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year?
Most Upvoted Answer
A company development a technology to enhance the battery life of mobi...
Amortization charge calculation for the 3rd year:
The amortization charge for the 3rd year can be calculated using the straight-line method. This method allocates the cost of the intangible asset evenly over its useful life.

Total cost of development:
$500,000

Useful life of technology:
3 years

Amortization expense per year:
$500,000 / 3 = $166,667

Percentage of sales in the 3rd year:
15%

Amortization charge in the 3rd year:
$166,667 x 15% = $25,000
Therefore, the amortization charge for the 3rd year would be $25,000. This amount represents the portion of the intangible asset cost that should be expensed in the 3rd year based on the estimated sales activity for that period.
Explore Courses for CA Foundation exam
A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year?
Question Description
A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year?.
Solutions for A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year? defined & explained in the simplest way possible. Besides giving the explanation of A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year?, a detailed solution for A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year? has been provided alongside types of A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year? theory, EduRev gives you an ample number of questions to practice A company development a technology to enhance the battery life of mobile phones. the cost of development hace been capitalized as an intangible asset at 500000 the company estimate the life of technology to be 3 years the company has forecasted that 50% of sales will be in year 1 35% in year 2 15% in year 3 what should be the amortization charge in 3rd year? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev