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All of the following should be capitalized as part of PP&E Interest Associated with External Financing Disposal Costs to Remove Previous Structure Repair of HVAC

  1. All of the following should be capitalized as part of PP&E
    1. Interest Associated with External Financing
    2. Disposal Costs to Remove Previous Structure
    3. Repair of HVAC
    4. Shipment Costs to Factory
  2. Newts Magical Beasts, LLC recorded Revenue of $100K and Total Costs of $80K. Assets were $25k and $50k at the begging and ending of the year, respectively. Calculate ROA
    1. 400%
    2. 80%
    3. 40%
    4. 53%
  3. Land is depreciated using the following useful life
    1. 3-5years
    2. 5-10 years
    3. None
    4. A or B
  4. Depreciation for tax purposes is calculated using the following method:
    1. Activity Method
    2. MACRS
    3. Double Declining
    4. Straight-Life
  5. Equipment purchased for $100,000 with a 5 year useful life and $10,000 salvage value is determined to be able to produce 90,000 unites its life time. Assuming the activity method is used, what is the Depreciation Expense in Year 3 if 20,000 units were produced?
    1. 9,000
    2. 18,000
    3. 22,222
    4. 20,000
  6. Depreciation is due to wear/tear related to the asset
    1. True
    2. False
  7. All the following may be capitalized, except
    1. Purchased Brand Recognition
    2. Internally Generated R&D
    3. Legal Costs to Defend Patent
    4. A Franchise Fee for 5 Year Operation
  8. When capitalizing definite-lived intangibles, all of the following are increased except:
    1. Future Amortization
    2. Intangible Asset
    3. Current Assets
    4. Long-Term Assets
  9. A trademark must be renewed every
    1. 5 years
    2. 10 years
    3. 15 years
    4. 20 years
  10. Patents are good for
    1. 3 years
    2. 5 years
    3. 10 years
    4. 20 years
  11. Purchased Goodwill is calculated as the purchase price less __________ .
    1. Fair Market Value
    2. Book Value
    3. Fixed Assets
    4. Management Assumptions

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