The following information relates to the acquisition of the assets of Quine Corporation by Armstrong Inc. for Year 5. Fair value of Quine GW, January 1, Year 5 60,000 Fair value of Quine GW, December 31, Year 5 55,000 When the assets were originally purchased by Armstrong on January 1, Year 1, the goodwill of the Quine business was determined to be $100,000 and would last 10 years. During Year 5, Armstrong also spent $36,000 to enhance the brand image of Quine's products and it is expected that the enhancement will have to be done again in four years. What is the amount of expense to be shown on the income statement of Armstrong Inc.

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?