5. The general ledger of Vance Corporation as of December 31, 2011, includes the following accounts:

Copyrights $ 30,000 Deposits with advertising agency (will be used to promote goodwill) 27,000 Discount on bonds payable 70,000 Excess of cost over fair value of identifiable net assets of Acquired subsidiary 390,000 Trademarks 90,000

In the preparation of Vance's balance sheet as of December 31, 2011, what should be reported as total intangible assets? a. $480,000. b. $507,000. c. $510,000. d. $537,000.

6. Blue Sky Companys 12/31/10 balance sheet reports assets of $5,000,000 and liabilities of $2,000,000. All of Blue Skys assets book values approximate their fair value, except for land, which has a fair value that is $300,000 greater than its book value. On 12/31/10, Horace Wimp Corporation paid $5,100,000 to acquire Blue Sky. What amount of goodwill should Horace Wimp record as a result of this purchase? a. $ -0- b. $100,000 c. $1,800,000 d. $2,100,000

7. Twilight Corporation acquired End-of-the-World Products on January 1, 2010 for $4,000,000, and recorded goodwill of $750,000 as a result of that purchase. At December 31, 2010, the End-of-the-World Products Division had a fair value of $3,400,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $2,900,000 at that time. What amount of loss on impairment of goodwill should Twilight record in 2010? a. $ -0- b. $250,000 c. $350,000 d. $600,000

8. Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles? a. Amount of loss is reasonably estimable and event occurs infrequently. b. Amount of loss is reasonably estimable and occurrence of event is probable. c. Event is unusual in nature and occurrence of event is probable. d. Event is unusual in nature and event occurs infrequently.