ch 12 intangible assets – Flashcards

Intangible assets are normally classified as current assets.

Which of the following is not a characteristic of intangible assets?

Expensing all R&D costs associated with internally created intangible assets results in

Which of the following is a factor to be considered in determining a limited-life intangible asset's useful life?

A purchased limited-life intangible asset ______ amortized and is impairment tested using _______________.

Construction permits are

Which of the following is not one of the major categories of intangibles?

Marketing-related intangibles would include

The difference between the price paid to acquire another company and the fair market value of that company's net assets can be referred to as

The two principal types of patents issued by the U.S. Patent and Trademark Office are

On January 1, 2014, Bumper Corp. acquires a customer list for $400,000. Bumper estimates that this customer list will generate value for at least 5 years. At the end of 3 years, Bumper plans to sell the customer list to another company for $62,500. On Bumper's income statement for the year ended December 31, 2014, how much amortization expense should it report?

Tiburon Corporation purchased a patent for $1,850,000 on November 30, 2012. It has a remaining legal life of 11 years. Tiburon estimates that the remaining useful life of the patent is useful life of 15 years. What balance will be reported on the December 31, 2014 balance sheet for the patent (if necessary, round your answer to the nearest dollar)?

Which of the following costs of goodwill should be amortized over their estimated useful lives?

St. Sebastian Company and A. Jamison Company were combined in a purchase transaction. St. Sebastian was able to acquire Jamison at a bargain price. The fair market value of Jamison's net assets exceeded the price paid by St. Sebastian to acquire the company. Proper accounting treatment by St. Sebastian is to report the excess fair value over purchase price as

Impairment testing is performed in the same way for indefinite-life intangibles and limited-life intangibles.

Truffle Inc. acquired a patent on January 1, 2011 for $7,800,000. It was expected to have a 10 year life and no residual value. Truffle uses straight-line amortization for its patents. On December 31, 2014, the expected future cash flows from the patent are $518,000 per year for the next six years. The present value of these cash flows, discounted at Truffle's market interest rate, is $2,120,000. What amount, if any, of impairment loss will be reported on Truffle's 2014 income statement?

The impairment rule for goodwill involves how many steps?

Which of the following principles best describes the current method of accounting for research and development costs?

Which of the following research and development costs may be capitalized?

The presentation of intangible assets in the financial statements

All of the following statements regarding IFRS accounting treatments for intangibles are true except: