Your calculations are not of my interest. To pass this test, you have to select the right answers. I am not going to grade for your calculations.

4- A company acquires a license at a cost of 77.000 $ at the beginning of the year (1.1.2021). The useful life is 7 years. The company uses fair value method. Two years later (31.12.2022), the company realize that the market value of the license has increased by 10.000 $. Eventually, after one year (31.12.2023), the company sold the license at a price of 60.000 $. What would be the profit/loss in this final sales transaction (use straight line method)?

a) 6.000 $ profit

b) 5.000 $ loss

c) 3.000 $ loss

d) 8.000 $ profit

5- Which one of the following is a FALSE statement for an intangible asset?

a) Research costs cannot be capitalized.

b) An internally-generated brand cannot be capitalized.

c) Development cost associated with a technically feasible project cannot be capitalized.

d) Goodwill (other than the one acquired in a business combination) cannot be capitalized.

6- A change in the estimated useful life of an equipment requires

a) a retroactive change in the amount of periodic depreciation recognized in the previous years.

b) that no change be made in the periodic depreciation so that depreciation amounts are comparable over the life of the asset

c) that the amount of periodic depreciation be changed in the current year and in future years

d) that income for the current year be increased