Day 18 Flashcards
If a non-monetary exchange has commercial substance, the transaction is accounted for using the ______?
Fair value
MCQ-00720
Did not work out 11/01/23
How should Intangible assets be amortized?
Amortized over the lesser of the Useful Economic Life or the Legal Life
MCQ-06602
True or False: Goodwill is amortized
False
Goodwill is not amortized, but is subject to an impairment test
MCQ-00548
When should a company recognize goodwill in its BS?
When Goodwill has been created in the purchase of a business
MCQ-08256
RULE: Goodwill acquired in an arms-length transaction is capitalized, but internally created goodwill is expensed bc an objective measure of its value is difficult
MCQ-00602
ABC Inc. incurred legal fees defending it patent rights. When should the legal fees be capitalized?
If the litigation is SUCCESSFUL
If the litigation is NOT successful = DO NOT CAPITALIZE
MCQ-11095
If a Trademark can be renewed indefinitely, how should the amortization be recorded?
No Amortization is recorded
Amortization is only recorded for intangible assets with a DEFINITE LIFE
MCQ-06571
ABC Inc. successfully defended its patent for $600,000, how should they treat the $600,000 of legal fees?
Debit the Patent Account and amortize it
MCQ-14838
When would Trademarks acquired by an entity most likely be deemed to have an indefinite useful life?
The entity’s trademark has a remaining legal life of five years but is renewable at very little cost
MCQ-15862
