Q: In 2020 as part of a property purchase, Melrose Ltd. incurred and paid 2019 property taxes. These costs should be

a) recognized as an impairment loss.

b) recognized on the Statement of Income as an expense.

c) recognized as a capital cost.

d) not be taken into consideration, these costs are irrelevant.

Q: Which of the following is an example of an intangible with an indefinite life?

a) A copyright on a song.

b) A patent on a new technology.

c) The development costs of a new drug.

d) The cost of a trademark.