rademarks 4,000,000 1,000,000 Goodwill Research & Development Costs 4,500,000 2,000,000 a. $11,500,000 b. $7,500,000 c. $5,500,000 d. $9,500,000 8. On May 1, 2016, Wagner Company purchased a patent for $75,000. It is estimate useful life of 5 years, and a 20-year legal life. The amount of Amortization Expens 2016 would be a. $15,000. b. $10,000. c. $7,500 d. $3,750. 9. Goodwill can be recorded a. when customers keep returning because they are satisfied with the compan b. only when there is an exchange transaction involving the purchase of an entire business c. when the company has exceptional management. d. when the company acquires a good location for its business. 10. If the market rate of interest is less than the contractual rate of interest, bonds will a. at a premium. b. at face value. c. at a discount. d. only after the stated rate of interest is increased. a. cash fund to be used to replace plant assets. b. amount to be deducted from the cost of the plant asset to arrive at its fair c. amount charged to expense in the current period. d. 11. The balance in the Accumulated Depreciation account represents the e plant asset. amount charged to expense since the acquisition of th Page 2 of 10