Q3 On January 2, 2020, Mack Enterprises bought a trademark from Barton Industries for $3 80 million At the time of purchase, the remaining useful life of the trademark was 35 years Its unamortized cost on Bartons books was $2 7 million In Macks 2020 income statement, what amount should be reported as amortization expense Q2 Which of the following would be true about construction permits A They are customer related intangible assets B They are not considered to be intangible assets C They are marketing related intangible assets D They are contract related intangible assets Q3 Madsen Pharmaceuticals has spent 15 years developing a new medication for epileptic seizures They finally have a new FDA approved drug and have applied for a patent When you look at Madsens accounting books, what would you expect to find A The research and development costs for the new drug would have been expensed in one lump sum at the end of the project when total costs were determined B The research and development costs for the new drug would have been expensed throughout the past 15 years as money was spent on the project C The research and development costs for the new drug would have been capitalized throughout the past 15 years as money was spent on the project D The research and development costs for the new drug would have been capitalized at the beginning of the project and amortized as money was used Q4 Research and development costs that have been expensed should be shown in the notes A with every income statement B monthly C annually D quarterly Q5 In which of the following instances is the firm performing a recoverability test A A firm is comparing the fair value of an indefinite life intangible asset with the carrying amount of that asset B A firm is comparing the future net cash flows expected from the use of an indefinite life intangible asset to the carrying amount of that asset C A firm is comparing the fair value of a limited life intangible asset with the carrying amount of that asset D A firm is comparing the future net cash flows expected from the use of a limited life intangible asset to the carrying amount of that asset

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Q3: On January 2, 2020, Mack Enterprises bought a trademark from Barton Industries for $3.80 million. At the time of purchase, the remaining useful life

Q3: On January 2, 2020, Mack Enterprises bought a trademark from Barton Industries for $3.80 million. At the time of purchase, the remaining useful life of the trademark was 35 years. Its unamortized cost on Bartons books was $2.7 million. In Macks 2020 income statement, what amount should be reported as amortization expense?

Q2: Which of the following would be true about construction permits?

A : They are customer-related intangible assets.
B : They are not considered to be intangible assets.
C : They are marketing-related intangible assets.
D : They are contract-related intangible assets.

Q3: Madsen Pharmaceuticals has spent 15 years developing a new medication for epileptic seizures. They finally have a new FDA-approved drug and have applied for a patent. When you look at Madsens accounting books, what would you expect to find?

A : The research and development costs for the new drug would have been expensed in one lump sum at the end of the project when total costs were determined.
B : The research and development costs for the new drug would have been expensed throughout the past 15 years as money was spent on the project.
C : The research and development costs for the new drug would have been capitalized throughout the past 15 years as money was spent on the project.
D :The research and development costs for the new drug would have been capitalized at the beginning of the project and amortized as money was used.

Q4:Research and development costs that have been expensed should be shown in the notes

A : with every income statement.
B : monthly.
C :annually.
D :quarterly.

Q5:In which of the following instances is the firm performing a recoverability test?

A : A firm is comparing the fair value of an indefinite-life intangible asset with the carrying amount of that asset.
B : A firm is comparing the future net cash flows expected from the use of an indefinite-life intangible asset to the carrying amount of that asset.
C : A firm is comparing the fair value of a limited-life intangible asset with the carrying amount of that asset.
D : A firm is comparing the future net cash flows expected from the use of a limited-life intangible asset to the carrying amount of that asset.