Testing for possible impairment of a long-lived asset (asset group) that an entity expects to hold and use is required a. at each interim and annual balance sheet date. b. at annual balance sheet dates only. c. periodically. d. whenever events or changes in circumstances indicate that its carrying amount may not be recoverable Tech Co. bought a trademark 2 years ago on January 2. Tech accounted for the trademark as instructed under GAAP. The intangible was being amortized over 40 years. The carrying amount at the beginning of the year was $38,000. It was determined that the cash flow will be generated indefinitely at the current level for the trademark. What amount should Tech report as amortization expense for the current year? a. S0 b. $922 c. $1,000 d. S38,000 Which of the following costs of goodwill should be capitalized and amortized? Maintaining Goodwill Developing Goodwill Yes 0 Yes 0 0 No Yes During the year just ended, Orr Co. incurred the following costs Research and development services performed by Key Corp. for Orr Design, construction, and testing of $150,000 $200,000 $175,000 preproduction prototypes and models Testing in search for new products or process alternatives In its income statement for the year, what should Orr report as research and development expense? a. $150,000 b. $200,000 c. $350,000 d. S525,000