ac551midtermhelp1

Ac551midtermhelp1 - 1 Wriglee Inc went to court this year and successfully defended its patent from infringement by a competitor The cost of this

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Unformatted text preview: 1. 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 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. Answer: patents and amortized over the remaining useful life of the patent. 2. A loss on impairment of an intangible asset is the difference between the asset's carrying amount and the expected future net cash flows. carrying amount and its fair value. fair value and the expected future net cash flows. book value and its fair value. Answer: asset's carrying amount and the expected future net cash flows. 3. The general ledger of Waner Corporation as of December 31, 2004, includes the following accounts: Copyrights $ 40,000 Deposits with advertising agency (will be used to promote goodwill) 27,000 Discount on bonds payable 67,500 Excess of cost over fair value of identifiable net assets of acquired 490,000 Trademarks 90,000 In the preparation of Waner's balance sheet as of December 31, 2004, what should be reported as total intangible assets? $714,500. $647,000. $620,000. $580,000. Answer: $620,000. Copyrights $ 40,000 Excess of cost over fair value of identifiable net assets of acquired 490,000 Trademarks 90,000 Total 620,000 4. Costs incurred internally to create intangibles are 4....
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This note was uploaded on 07/31/2009 for the course ACC acc551 taught by Professor Acc during the Spring '09 term at DeVry McLean.

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Ac551midtermhelp1 - 1 Wriglee Inc went to court this year and successfully defended its patent from infringement by a competitor The cost of this

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