A trademark or trade name is a word, phrase, jingle, or symbol that distinguishes or identifies a particular enterprise or product. Because trademarks and trade names have indefinite lives, they are not amortized. *

True

False

Assume that the Acme Company purchased a delivery truck for $21,000 on January 1 with an estimated salvage value of $1,000 at the end of its four-year service life. The annual depreciation of the delivery truck under the straight-line method would be $5,250. *

True

False

Gross earnings is the total compensation earned by an employee and it consists of wages, salaries, plus any bonuses and commissions. *

True

False