Amazing Company acquires a trade name from Fantastic Ltd. Amazing estimates it will receive $7,200 per year from the name over the next 9 years. Using a discount rate of 4%, what is the value in use to Amazing of this trade name?
A. $45,528
B. $58,398
C. $53,534
D. $55,676
Answer:C
Amazing Company acquires a trade name from Fantastic Ltd. Amazing estimates it will receive $7,200 per year from the name over the next 9 years. Using a discount rate of 4%, what is the value in use to Amazing of this trade name?
A. $45,528 B. $58,398 C. $53,534 D. $55,676