ollowing characteristics do intangible assets possess? Which of the following charact 1. a. Physical existence b. Claim to a specific amount of ic amount of cash in the future. Held for resale. d. Costs incurred internally to create intangibles are 2. a. Capitalized b. Capitalized if they have an indefinite life c. Expensed as incurred d Expensed only if they have a limited life. 3 Which of the following methods of amortization is normally used for intangible assets? a. Sum-of-the-years-digits b. Straight-line c. Units of production d. Double-declining-balance 4. Which intangible assets are amortized? 1. Limited-Life Yes No ii. Yes ili. Yes iv. No v. No Yes No 5. Goodwil a. Represents the purchase price of a business that is about to be sold. b. Is the difference between the fair value of the net tangible and identifiable intangible assets and the purchase price of the acquired business? c. Generated internally should be capitalized in the year it occurs. d. Is the only account in the financial statements that is based on value, all other accounts are recorded at an amount other than their value. 6. Which of the following is not considered research and development costs? a. Planned search or critical investigation aimed at discovery of new knowledge. b. Translation of research findings or other knowledge into a plan or design for a c. Translation of research findings or other knowledge into a significant d. new product or process. improvement of an existing product. Cost of marketing research to promote a new product. 7. Alonzo Co. acquires 3 patents from Shaq Corp. for a total of $280,000. The patents were carried on Shaq's books as follows: Patent AA: $5,000; Patent BB: $2,000; and Patent CC: $3,000. When Alonzo acquired the patents their fair values were: Patent AA: $20,000, Patent BB: $240,000, and Patent CC: $60,000. At what amount should Alonzo record Patent BB? a. $93,333 b. $186,666 $2.000 d. $210,000