1. On January 1, 2013 Frank Company purchased a copyright for $90,000 that gives it the right to use a certain photograph in its ads for the next three years. Determine the balance in the copyright account at the end of 2014?

Question 1 options:

	a. $90,000
	b. $30,000
	c. $50,000
	d. $60,000
	e. $-0-

2. Regarding acquisition, FASB requires that:

Question 2 options:

	a. the parent company account for all acquired intangible assets at their historic cost.
	b. the parent company account for all acquired intangible assets at their book value.
	c. the parent company identifies all intangible assets held by a subsidiary on the date of acquisition.
	d. the fair value of intangibles is recorded by the parent as an asset even though the contractual or other legal rights have not been gained.
	e.the parent company report any excess amount paid above the net asset value of the subsidiary as copyright.

3. Which of the following principles is violated by expensing research and development costs in the period incurred?

Question 3 options:

	a. Matching principle
	b. Conservatism principle
	c. Monetary principle
	d. Cost principle
	e. Time period principle