ACC2002 Final

ACC2002 Final - ACC2002 Final Exam Name _ #1._c_ a. b. c....

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Final Exam Name _______________________________________________________ #1.__c__ 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.__c__ Broadway Corporation was granted a patent on a product on January 1, 1998. To protect its patent, the corporation purchased on January 1, 2009 a patent on a competing product which was originally issued on January 10, 2005. Because of its unique plant, Broadway Corporation does not feel the competing patent can be used in producing a product. The cost of the competing patent should be a. amortized over a maximum period of 20 years. b. amortized over a maximum period of 16 years. c. amortized over a maximum period of 9 years. d. expensed in 2009. #3.___d_ Which of the following is considered research and development costs? a. Planned search or critical investigation aimed at discovery of new knowledge. b. Translation of research findings or other knowledge into a plan or design for a new product or process. c. Translation of research findings or other knowledge into a significant improvement of an existing product. d. all of the above. #4.___c__ Jeff Corporation purchased a limited-life intangible asset for $120,000 on May 1, 2008. It has a useful life of 10 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2010? a. $ -0- b. $24,000 c. $32,000 d. $36,000 (120.000 ÷ 10)x 2 2/3 = 32.000 #5.___c__ Dotel Company’s 12/31/10 balance sheet reports assets of $6,000,000 and liabilities of $2,500,000. All of Dotel’s assets’ book values approximate their fair value, except for land, which has a fair value that is $400,000 greater than its book value. On 12/31/10, Egbert Corporation paid $6,100,000 to acquire Dotel. What amount of goodwill should Egbert record as a result of this purchase? a.
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This note was uploaded on 03/14/2010 for the course ACC 2002 taught by Professor Xy during the Spring '10 term at Northeastern.

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ACC2002 Final - ACC2002 Final Exam Name _ #1._c_ a. b. c....

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