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1. Which of the following characteristics do intangible assets possess? a. Physical existence. b. Claim to a specifi c. Long-lived d. Held for resale. c
1. Which of the following characteristics do intangible assets possess? a. Physical existence. b. Claim to a specifi c. Long-lived d. Held for resale. c amount of cash in the future. Costs incurred internally to create intangibles are 2. a Capitalized. b. Capitalized if they have an indefinite life. C. Expensed as incurred. d Expensed only if they have a limited life. Which of the following methods of amortization is normally used for intangible assets? 3. a. Sum-of-the-years' -digits b. Straight-line c. Units of production d. Double-declining-balance Which intangible assets are amortized? 4 Indefinite-Life 1. Limited-Life Yes No Yes ii, Yes ii. Yes iv. No v. No No 5. Goodwill a. Represents the purchase price of a business that is about to be sold b. Is the difference between the fair value of the net tangible and identifiable intangible assets and the purchase price of the acquired business? c. Generated internally should be capitalized in the year it occurs. d. Is the only account in the financial statements that is based on value, all other accounts are recorded at an amount other than their value. 6. Which of the following is not considered research and development costs? a. Planned search or critical investigation aimed at discovery of new knowledge. b. Translation of research findings or other knowledge into a plan or design for a new product or process c. Translation of research findings or other knowledge into a significant d. Cost of marketing research to promote a new product. improvement of an existing product 7. Alonzo Co. acquires 3 patents from Shaq Corp. for a total of $280,000. The patents were carried on Shaq's books as follows: Patent AA: $5,000; Patent BB: $2,000; and Paten CC $3.000. When Alonzo acquired the patents their fair values were: Patent AA $20,000, Patent BB: $240,000, and Patent CC: $60,000. At what amount should Alonz record Patent 8B? $93,333 b. $186,666 c. $2,000 d. $210,000
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