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1. Neura Pharma Inc. has purchased a drug patent with a remaining useful life of 13 years. How should this new asset be classified? A current tangible asset A non-current tangible asset A non-current intangible asset A current intangible asset2. June Smith a process engineer has sold her 15-year patent for a new etching process to Silica Labs Inc. In return she has received $500000 in cash and based on its value on the sale date $200000 in common stock in Silica Labs. The stock is forecasted to double in market value over the next two months.How would this transaction be recorded by Silica Labs? Debit patent account $700000; credit cash $500000; credit common stock $200000 Debit cash $500000; debit common stock $200000; credit patent account $700000 Debit cash $500000; credit patent account $500000 Debit patent account $500000; credit cash $5000003. Consider the same scenario as in the previous question:June Smith a process engineer has sold her 15-year patent for a new etching process to Silica Labs Inc. In return she has received $500000 in cash and based on its value on the sale date $200000 in common stock in Silica Labs. The stock is forecasted to double in market value over the next two months.Assuming that Silica Labs holds some long-term debt which of the following describes the effect of the transaction on Silica Labs? Current ratio will decrease and total debt to equity ratio will increase Current ratio will increase and total debt to equity ratio will decrease Current ratio will increase and total debt to equity ratio will increase Current ratio will decrease and total debt to equity ratio will decrease4. Lucky Lee a video-game store in New York city purchases a game machine directly from Taiwan for $30000. In the U.S. the same machine will probably cost at least $36000. Pick the most appropriate accounting action for Lucky Lee: Record the machine at $36000 Record the machine at $30000 Record the machine for [($30000+$36000)/2] = $33000 Have the machine examined by an independent appraiser and record it at the appraised value

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