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47. On January 1, 2012 Vision Corporation purchased Lite Inc. for $300,000. The company paid $50,000 over and above the net asset value to Lite.

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47. On January 1, 2012 Vision Corporation purchased Lite Inc. for $300,000. The company paid $50,000 over and above the net asset value to Lite. At the end of the year, the fair value of the goodwill was $60,000. Compute the amount of goodwill to be reported on the consolidated balance sheet of Vision Corporation a $300,000 b. $250,000 C. $60,000 d. $50,000 e. $10,000 48. Hudson Corporation created a technology in the year 2008 and got it patented. The legal cost for getting the patent was $60,000. The useful life of the patent is 10 years. The company was acquired by Meditech on Jarkury 1, 2012. The fair value of the patent on the date on acquisition was $300,000. Determine the amount paid by Meditech towards patent on acquisition. a. $60,000 b. $24,000 c. $36,000 d. $300,000 e. S-0- 49. The translation of new knowledge into actual products or services or into significant improvements in existing products or services is called: a invention b. research. c. development d. up gradation e impairment. 50. Which of the following is true of accounting for research and development costs under U.S. GAAP? a All research and development costs must be expensed as incurred b. Research costs are expensed, but some development costs may be capitalized. All research and development costs are capitalized. d. Research and development costs that lead to successful projects are capitalized. e. Development costs are expensed, but some research costs may be capitalized. 51. Under both GAAP (and IFRS): a rescarch costs are expensed as incurred. b. research costs are capitalized and amortized over the anticipated useful life. c. development costs are expensed as incurred. d. development costs are capitalized and amortized over the anticipated useful life. e both research and development costs are expensed as incurred. 2467 words English (United States) Focus 90 O tv 4 @ X W

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