1. Which of the following characteristics do intangible assets possess? a. Physical existence. b. Claim to a specific amount of cash in the future. c. Long-lived d. Held for resale. ts incurred intenally to create intangibles are a Capitalized b. Capitalized if they have an indefinite life. C. Expensed as incurred d. Expensed only if they have a limited life 2. Cost 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 4. Which intangible assets are amortized? Limited-Life 1 Yes No Yes ii. Yes i. Yes v. 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? d. Is the only account in the financial statements that is based on value, all other c. Generated internally should be capitalized in the year it occurs. 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 improvement of an existing product d. Cost of marketing research to promote a new 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