1.The intangible asset goodwill may be

a.Capitalized only when created internally

b.Written off directly to retained earnings

c.Capitalized either when purchased or created internally

d.Capitalized only when purchased

2.King Corporation owns machinery with a book value of $760,000. It is estimated that the machinery will generate future cash flows of $770,000 The machinery has a fair value of $560,000. King should recognize a loss on impairment of

a.210,000

b.200,000

c.10,000

d.0

3.Which of the following is not a major characteristic of a plant asset?

a.Acquired for use

b.Yields services over a number of years

c.Acquired for resale

d.Possesses physical substance

4.The book value of a plant asset is?

a.The asset's acquisition cost less the total related depreciation recorded to date.

b.The fair market value of the asset at a balance sheet date.

c.Equal to the balance of the related accumulated depreciation account

d.The assessed value of the asset for property tax purposes.

5.Fences and parking lots are reported on the balance sheet as

a.Current assets

b.Property & equipment

c.Land

d.Land improvements

6.Which of the following principles best describes the current method of accounting for research and development costs?

a.Systematic and rational allocation

b.Associating cause and effect

c.Immediate recognition as an expense

d.Income Tax Minimization

7.Which of the following is not an intangible asset?

a.Patent

b.Research and development costs

c.Franchise

d.Trademark

8.Which characteristic is not possessed by intangible assets?

a.Result in future benefits

b.Physical existence

c.Long-lived

d.Expensed over current and/or future years

9.In January 2020, Yager Corporation purchased a mineral mine for $5,100,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $0 after the one has been extracted. What should be the charge to depletion expense per ton of extracted mineral?

A.2.55

B.10.2

C.0.39

D.3.1