1- What is the proper time or time period over which to amortize an intangible asset if there is no foreseeable limit on the period of time over which the intangible assets is expected to be used in operations?

A. immediately

B. not amortized

C. 40 years

D. 50 years

2- Nana Company purchased a computer for $13,000 on July 1, 2018. The company intends to depreciate it over 4 years using the double-declining balance method. The residual value is $4,000. What is depreciation for 2019?

1- $3,250

2- $3,375

3- $4,875

4- $6,500

3- Which of the following is NOT a characteristic of intangible assets?

A. not used in operations

B. economic value

C. long-term benefits

D. lack physical existence

4- Henry Company purchased equipment for $75,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $3,900.Using the double-declining balance method, depreciation for 2019 would be:

A. $45,000.

B. $30,000.

C. $18,000.

D. $17,064.

5- Angles Corporation purchased equipment on January 1, 2017 for $800,000, estimating a five-year useful life and no residual value. In 2017 and 2018, Angles depreciated the asset using the straight-line method. In 2013, Angles changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Angles record for the year 2019 on this equipment?

A. $120,000

B. $160,000

C. $236,000

D. $240,000

6- Which of the following is an exclusive right to reproduce and sell an original creative work?

A. franchise

B. copyright

C. trademark

D. patent

7- Space X Company purchased equipment for $87,000 on April 1, 2018. The equipment is expected to have a five-year life and a residual value of $4,500. Using the straight-line method, the book value at December 31, 2018, would be:

A. $66,000

B. $74,625

C. $75,000

D. $87,000

8- Which of the following is an impairment indicator for property, plant and equipment?

A- carrying amount of the net assets of the entity is less than the estimated fair value of the entity as a whole.

B- a significant increase in the purchase price of an asset or asset group scheduled to be acquired in the current period.

C- a significant adverse change in legal factors that could affect the value of the asset or asset group.

D- a significant increase in the market price of an asset or asset group.

9- Goodwill is recorded as an intangible asset when ________.

A. the fair value of a company's assets exceed the carrying value of those assets.

B. one company acquires another company.

C. the fair value of a company's assets are greater than the cost of acquiring that company.

D. a company's exceptional quality, reputation, or capability enables it to generate exceptional earnings.

10- Which of the following intangible assets is NOT subject to amortization?

A. franchise

B. copyright

C. goodwill

D. customer list

11- An asset group is being evaluated for an impairment loss. The following financial information is available for the asset group: Carrying value = $100,000,000, Sum of the discounted cash flows = $95,000,000, and Fair value less costs to sell = $80,000,000. What amount of impairment loss, if any, should be recognized?

A. $5,000,000

B. $15,000,000

C. $20,000,000

D. $0

12- The amount of impairment loss is the excess of book value over:

A. Higher of fair value less costs to sell and value in use.

B. Undiscounted future cash flows.

C. Future revenues.

D. Carrying value.

13- During its first year of operation, William Corporation incurred $375,000 of research costs undertaken with the prospect of gaining new technical understanding about a new nanotechnology procedure. An additional $505,000 was incurred to develop a production process to use that new technology to produce a new lubricant product. Assume development costs meet six conditions such as technical feasibility to demonstrate future economic benefit. Under IFRS, which of the following is the appropriate accounting for these costs?

A. capitalize $880,000 as an intangible asset.

B. expense $375,000 and capitalize $505,000 as an intangible asset.

C. expense $505,000 and capitalize $375,000 as an intangible asset.

D. Any of these options can be appropriate under IFRS.

14- Recognition of impairment for property, plant and equipment is required if book value exceeds:

A. Fair value.

B. Present value of expected cash flows.

C. Recoverable amount.

D. Undiscounted expected cash flows.

15- When a patent is amortized, the credit is usually made to ...

A. the Patent accounts

B. an Accumulated Amortization accounts

C. Deferred Credit account

D. an expense account