. (TCO C) The major problem of accounting for intangibles is determining (Points : 5)

fair market value. separability. salvage value. useful life.

Question 2. 2. (TCO C) Wriglee, Inc. went to court this year and successfully defended its patent from infringement by a competitor. The cost of this defense should be charged to (Points : 5)

patents, and amortized over the legal life of the patent. legal fees, and amortized over 5 years or less. expenses of the period. patents, and amortized over the remaining useful life of the patent.

Question 3. 3. (TCO C) Purchased goodwill should (Points : 5)

be written off as soon as possible against retained earnings. be written off as soon as possible as an extraordinary item. be written off by systematic charges as a regular operating expense over the period benefited. not be amortized.

Question 4. 4. (TCO C) ELO Corporation purchased a patent for $90,000 on September 1, 2008. It had a useful life of 10 years. On January 1, 2010, ELO spent $22,000 to successfully defend the patent in a lawsuit. ELO feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2010? (Points : 5)

$20,600 $20,000 $18,800 $15,600

Question 5. 5. (TCO C) Floyd Company purchases Haeger Company for $800,000 cash on January 1, 2011. The book value of Haeger Company