Part One: Multiple Choice Question: 1. Kohlman Corporation owns machinery with a book value of $190,000. The machinery han fair value less costs to sell of $185,000, and its value-in-use is $170poo Kohiman sbod recognize a loss on impairment of 6 $5,000. c. $15,000. di $20,000 2. Copyrights should be amortized over their legal life. b. the life of the creator plus fifty years c. twenty years d. their useful life or legal life, whichever is shorter 3. Jeff Corporation purchased a limited-life intangible asset for $150,000 on January 1, 2013. has a useful life of 10 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2016 as-0- b. $30,000 c. $40,000 d. $45,000 Use the following information for questions 4 and 5 (round up). On January 1, 2014, Bingham Inc. purchased a patent with a cost 2,420,0009, a useful life of 5 years. The company uses straight-line depreciation. 2 At December 31, 2015 (meaning after 2 years), the company determines that impairment indicators are present. The fair value less costs to sell the patent is estimated to be 1,080,000. The patent's value-in-use is estimated to be E1,130,000. The asset's remaining useful life is estimated to be 3 years. Bingham's 2015 income statement will report Loss on Impairment of 0. b. 262,000. c. 322,000 d. 484,000. 4. a. The company's 2016 income statement will report amortization expense for the patent of a. $377,000 b. $464,000. c. $565,000. d. $1,190,000. 5. 6. Minimum lease payments may include a a. penalty for failure to renew. b. bargain purchase option. c. guaranteed residual value. d. any of these answer choices