Grade Details Unit 6 Review

Grade Details Unit 6 Review - Unit 6 Intangibles(Mar 9 Mar...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Unit 6: Intangibles (Mar 9 - Mar 15) Grade Details Unit 6 Review 1. Question: The cost of an internally developed unidentifiable intangible is expensed as incurred. Accordingly, which one of the following costs would be expensed in the year it was incurred? Your Answer: legal cost of obtaining a patent cost of improvements with a three-year life made to an asset that is being leased by the company for a five- year period deferred charges cost incurred to train management-level employees CORRECT 2. Question: Which of the following statements regarding intangible assets is true? Your Answer: 3. Question: Which of the following costs should always be expensed as incurred? Your Answer: Page 1 of 10
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Unit 6: Intangibles (Mar 9 - Mar 15) Grade Details Unit 6 Review 4. Question: Which amortization method should be used for intangibles that are amortized? Your Answer: 5. Question: At the date of purchase, materials, equipment, facilities, and intangibles purchased from others that have alternative future uses in research and development should be Your Answer: 6. Question: At the date of purchase, materials, equipment, facilities, and intangibles purchased from others that have no alternative future uses in research and development or other activities should be Your Answer: Page 2 of 10
Background image of page 2
Unit 6: Intangibles (Mar 9 - Mar 15) Grade Details Unit 6 Review 7. Question: Burrell Co. incurred the following costs during 2010 in the development and production of a new product: $ 30,000 in legal fees to obtain a patent $200,000 in the design, construction, and testing of a preproduction prototype and model $280,000 in engineering activity required to advance the design of the product to the point that it was ready for manufacture $ 35,000 in trouble-shooting in connection with breakdowns during commercial production Your Answer: 8. Question: In January 2010, the Remy Corporation purchased a patent for $231,000 from Nel Company that had a remaining legal life of 14 years. Remy estimated that the remaining economic life would be seven years. In January 2014, the company incurred $30,000 in legal costs to defend the patent from an infringement. Remy’s lawyers were successful, and the remaining years of benefit from the patent were estimated to be six years. The patent amortization expense for 2014 is Your Answer: Page 3 of 10
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/26/2011 for the course ACC MT 140 taught by Professor Magoo during the Spring '11 term at Kaplan University.

Page1 / 10

Grade Details Unit 6 Review - Unit 6 Intangibles(Mar 9 Mar...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online