1. Intangible Assets Determine whether to capitalize or expense the following. Are the amounts amortized? Expenditure Paid $10,000 to purchased patent Purchased a company. Paid $40,000 for goodwill Capitalize (C) Expense (E) Amortized? Yes/No
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- Accounting for Various Intangible Costs: Amortization, Change in Accounting Estimate Munn Inc. reported its Other noncurrent asset account balances on December 31 of Year 2 as follows. Patent Accumulated amortization Net patent Information relating to these Other noncurrent assets for Year 3 follows. 1. The patent was purchased from Grey Company on January 2 of Year 1, when the remaining legal life was 16 years. On January 2 of Year 3, Munn determined that the remaining useful life of the patent was only six more years. 2. On January 2 of Year 3, in connection with the purchase of a trademark from Cody Corp., the parties entered into a noncompete agreement. Munn paid Cody $960,000, of which 75% related to the trademark and 25% reflected Cody's agreement not to compete for a period of five years in the line of business covered by the trademark. Munn considers the life of the trademark to be indefinite. 3. On January 1 of Year 3, Munn acquired all the noncash assets and assumed all…Question When computing depreciation expence of PE bo g toutle-decing e depreciation method produce the seme OA aual book vatue of the asset OR lotal depreciation expecse over the assets usetul e Oc amnua depreciation expense of the assat. OD. annual tax paid. MacBookk Pro5. How should accounting fees for acquisition be treated? A. Expensed in the period of acquisition B. Capitalized as part of acquisition cost C. Deferred and amortized D. Deferred until the company is disposed of or wound-up 6.The excess of the price paid over the fair value of the net identifiable assets acquired should be recognized as A. Goodwill to be amortized periodically for 20 yearS. B. Expenses immediately C. Goodwill not subject to amortization but subject to impairment D. Goodwill to be amortized for 40 years 7.Under PFRS 3 (Business Combinations) A. Both direct and indirect costs are to be capitalized B. Both direct and indirect costs are to be expensed C. Direct costs are to be capitalized and indirect costs are to be expensed D. Indirect costs are to be capitalized and direct costs are to be expensed
- Please indicate the appropriate category of the following items: Question 23 options: Cost of equipment obtained under capital lease Land Goodwill acquired Music Copyrights The cost of developing a patent The cost of purchasing a patent Brand Names Research costs The cost of an annual update of payroll software Goodwill generated internally 1. Intangible Asset 2. Tangible Asset 3. Expense 4. Other (none of the above) 5. Not recorded on financial statementsCurrent Attempt in Progress Assuming there are no impairment losses, the balance in the Accumulated Depreciation account represents the R O amount charged to depreciation expense since the acquisition of the asset. O amount to be deducted from the cost of the asset to arrive at its fair value. O amount charged to depreciation expense in the current period. O cash fund to be used to replace assets. eTextbook and Media8. If a FVTPL financial asset is bought, the investment account is Multiple-Choice O A. Debited for the cost of the financial asset NOT including any extra expenditures required in making t he purchase O B. Debited for the cost of the financial asset including any extra expenditures required in making the pu rchase O C. Credited for the cost of the financial asset including any extra expenditures required in making the p urchase D. Credited for the cost of the financial asset NOT including any extra expenditures required in making the purchase
- A fixed asset with a cost of $32,167.00 and accumulated depreciation of $28,950.30 is sold for $5,468.39. What is the amount of the gain or loss on disposal of the fixed asset? Select the correct answer. A. $2,251.69 loss B. $2,251.69 gain C. $3,216.70 gain D. $3,216.70 lossA purchased B, paying $850,000 cash. The books values and fair values of acquired assets and liabilities were: Book asset - Fair Value Current assets net: $130,000 - $125,000 Property, plant, equip: 600,000 - 750,000 Liabilities: 175,000 - 175000 A would record goodwill of: A. $0. B. $150,000 C. $345,000 D. $850,000given up. Exchanges Busic steps in recording nonmonetary asset exchanges: Step 1: Record the new aset af fuir value, Step 2. Remove the book yalueof the nonmoctary asset given. Step 3: Record any eash received or paid. Step 4: Record any guin or loss. Knowledge Check 01 If a company exchanges an asset with a book value of $260,000, an original cost of $500,000, and a fair value of $300,000 plus cash of $100,000 for a new asset, what is the gain or loss recognized on the transaction? 9 of 13 Next >Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse several years ago for $89,000, and it has claimed $24,400 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: A. Assuming that Hauswirth receives $80,600 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. B. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $80,600, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. C. Assuming that Hauswirth receives $35,500 in cash in year 0 and a $81,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. cA fixed asset with a cost of $30,192 and accumulated depreciation of $27,172.80 is sold for $5,132.64. What is the amount of the gain or loss on disposal of the fixed asset? a.$2,113.44 loss b.$3,019.20 gain c.$3,019.20 loss d.$2,113.44 gainWhat amount of borrowing costs should be capitalized as cost of the asset? *a. P 360,000b. P 310,000c. P 328,750d. P 327,500SEE MORE QUESTIONS