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F05_136B_MT1 - Anderson ECON 136B Midterm#1 Name Complete...

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October 17, 2005 Anderson ECON 136B Midterm #1 Name _________________________ Complete the multiple choice on a green scantron and the problems in your blue-book. 1. Costs incurred internally to create intangibles are a. capitalized. b. capitalized if they have an indefinite life. c. expensed as incurred. d. expensed only if they have a limited life. 2. The cost of an intangible asset includes all of the following except 3. If an intangible asset is being amortized over a definite life, the following is true: 4. If a definite-life intangible asset has been subject to an event or circumstance indicating possible impairment:
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Midterm #1--Page 2 5. Management acquired a business in 2003, resulting in the recordation of $1,000,000 of goodwill. The Company's management continues to monitor the operations of the acquired business separately, however the balance sheet is no longer separately tracked. Which of the following is true regarding the acquired business? a. The acquired business represents a "reporting unit" for purposes of impairment testing. b. The acquired business does not represent a "reporting unit" for purposes of impairment testing. c. The associated goodwill should be written-off as the acquired business does not represent a "reporting unit" d. The associated goodwill can not be measured for impairment. 6. Indefinite lived intangible assets should be tested for impairment:
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