8. 9. 6. 7. 5. The distinction between group depreciation methods and composite depreciation methods is as follows: 8. b. C. d. The group depreciation method is for dissimilar assets with approximately the same useful lives, whereas the composite method is for similar assets with different lives. The group depreciation method is for similar assets with different lives. whereas the composite method is for dissimilar assets with approximately the same useful lives. The group depreciation method is for similar assets with approximately the same useful lives, whereas the composite method is for dissimilar assets with different lives. Both method deal with similar assets having approximately the same useful lives. The difference between the two methods has to do with the cost of the assets (large or small, as that is defined by the FASB). The intangible asset called goodwill 8. b. C. d. is amortized over an estimate of its useful life. may be capitalized if it is created internally. must be checked no more often than biannually (every two years) for impairment. is measured as the excess of acquisition cost over the fair value of identifiable net assets of the purchased company Which of the following intangible asset types is one that should not be amortized due to having an indefinite life? a. b. Patent Copyright, where the useful life is deemed to be less than life of the creator plus 70 years Trademark C. d. Franchise Depreciation rate revisions should be handled a. b. C. d. retrospectively, including a change in the current year. retrospectively, but with no change in the calculation for the current year. prospectively, but with no change in the calculation for the current year. prospectively, including a change in the current year. A betterment is a. b. C. a substitution of a similar asset. an improvement. Either (a) or (b), depending on the circumstances