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1. Buerhle Company needs to determine if its intangible assets were impaired and should be reduced or written off on its balance sheet. The impairment

1. Buerhle Company needs to determine if its intangible assets were impaired and should be reduced or written off on its balance sheet. The impairment test(s) to be used is (are) for

a.

recoverability test for indefinite-life intangibles and fair value test for limited life intangibles.

b.

recoverability test for limited life intangibles and fair value test for indefinite-life intangibles.

c.

recoverability test and fair value test for indefinite-life intangibles.

d.

recoverability test and fair value test for limited life intangibles.

2. The cost of an intangible asset includes all of the following except

a.

legal fees.

b.

application fees.

c.

purchase price.

d.

internal costs of research.

3. An asset that has a salvage value and has reached the end of its estimated useful life:

a.

has a book value equal to zero.

b.

can no longer be used by the company.

c.

is said to be fully depreciated.

d.

must be sold immediately.

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