Multiple Choice Question 85 Oriole Corporation acquired a patent on May 1 should be debited to the patent account? 2017. Ori le paid cash of $93000 tothe seller. Legal fees or 2600 were paid related to the acquisition. What amount a. S90400 S93000 C 95600 d. $2600 Multiple Choice Question 89 Oriole Corporation purchased a limited-life intangible asset for $384000 on May 1, 2016. It has a useful life of 10 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2018? a. S76800 b. 102400 C. $115200 d. SO Multiple Choice Question 94 The general ledger of Blossom Corporation as of December 31, 2018, includes the following accounts: Deposits with advertising agency (will be used to promote goodwill) Discount on bonds payable Excess of cost over fair value of identable net assets or 37000 14000 57000 Acquired subsidiary 350000 89000 In the preparation of Blossom's balance sheet as of December 31, 2018, what should be reported as total intangible assets? a. $490000. b. $439000 C $453000. d. $476000. Multiple Choice Question 106 The following information is available for Ivanhoe Companry's patents: Cost Carrying amount Expected future net cash flows Fair value $3540000 2020000 1698000 Ivanhoe would record a loss on impairment of a. $670000. b. S2020000 C $1842000 d. $322000 Multiple Choice Question 109 Ivanhoe Corporation acquired End-or-the-World Products on January 1, 2017 for $5900000, and recorded goodwill of $1100000 as a result of that purchase. At December 31, 2018, the End-of-the-word Products Division had a fair value of $4940000. e net identifiable assets of the Division excluding goodwill) had a fair value of $4237000 at that time. What amount of lass on impairment of goodwill should Ivanhoe record in 2018? a.$0 b. $397000 C $563000 d. S960000 Multiple Choice Question 114 Cullumber Corporation incurred the following costs in 2018: Acquisition of R&D equipment with a useful life of 4 years in RBD projects Start-up costs incurred when opening a new plant Advertising expense to introduce a new product Engineering costs incurred to advance a product to full production stage 580000 129000 480000 391000 What amount should Cullumber record as research & development expense in 2018? a. $971000 b. S798000 C $1100000 d. $536000 Multiple Choice Question 116 In 2017, Sandhill Corporation incurred research and development costs as follows: Materials and equipment$1 Personnel Indirect costs 06000 126000 166000 5398000 These costs relate to a product that wll be marketed in 2018. It is estimated that these costs will be recouped by December 31, 2020. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2017? a. S398000. b. SO C S272000. d. $292000 Multiple Choice Question 117 Ivanhoe Corp. incurred $740000 of research and development costs to develop a product for which a patent was granted on January 2, 2015. Legal fees and other costs associated with registration of the patent totaled $150000. On March 31, 2018, Ivanhoe paid $300000 for legal fees in a successful defense of the patent. The total amount capitalized for the patent through March 31, 2018 should be a. $450000. b. SB90000. C $1190000. d. $1040000
