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- Which of the following groups would be classified as intangible assets for financial accounting andreporting purposes? a. long-term notes receivable, copyrights, goodwill, and trademarksb. patents, computer software costs, franchises, and trademarksc. computer software costs, research and development costs for internally developed patents,patents, and goodwilld. organization costs, goodwill, costs of employee training programs, and trademarksIndicate whether the following items are capitalized or expensed in the current year. a.Purchase cost of a patent from a competitor. b.Research costs. c.Development costs (after achieving economic viability). d.Organizational costs. e.Costs incurred internally to create goodwill.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 statements
- A trademark is an intangible asset that has value to a business. Assume that you are an accountant with the responsibility of valuing the trademark of a well-known company such as Nike or McDonalds. What makes each of these companies unique and adds value? While the value of a trademark may not necessarily be recorded on the companys balance sheet, discuss what factors you think would affect (increase or decrease) the value of the companys trademark? Consider your answer through the perspective of various stakeholders.Indicate whether the following items are capitalized or expensed in the current year. a. Purchase cost of a patent from a competitor. b. Research and development costs. c. Organizational costs. d. Costs incurred internally to create goodwill.Which of the following groups would be classified as intangible assets for financial accounting and reporting purposes? Computer software costs, development costs for internally developed patents, research, and goodwill Long-term notes receivable, copyrights, goodwill, and trademarks Start-up costs, goodwill, costs of employee training programs, and trademarks Patents, software development costs, franchises, copyrights, and trademarks
- Indicate in the blank spaces below, the appropriate group heading for financial reporting purposes. Use the following code to identify your answer: PPE Property, Plant, and Equipment NR Natural Resources I Intangible Assets O Other N/A Not on the balance sheet Goodwill7.Timberlands Land improvements8.Franchises Development costs for a patented product 9.Licences Accumulated depreciation—buildings10.Equipment Trademarks11.Depreciation expense Research costs12.LandIndicate how the following items would generally be reported in the financial statements:1. Investment in subsidiary company2. Cost of engineering activity required to advance the design of a product to the manufacturing stage3. Lease prepayment4. Cost of equipment purchased5. Cost of searching for applications of new research findings 6. Cost incurred in the formation of a corporation7. Training costs incurred in start-up of new operation8. Purchase cost of a franchise9. Goodwill generated internally10. Cost of testing in search of product alternatives11. Goodwill acquired in the purchase of a business12. Cost of developing a patent13. Cost of purchasing a patent from an inventor 14. Legal costs incurred in securing a patent15. Unrecovered costs of a successful legal suit to protect the patent16. Cost of conceptual formulation of possible product alternatives17. Cost of purchasing a copyright18. Research and development costs19. Cost of developing a trademark20. Cost of purchasing a…Which costs does a company expense AFTER a long-term asset is put into use in the business? O Routine costs O Extraordinary costs O All after acquisition costs O None of the above SUBMIT
- Based on the knowledge that you have learned from this unit and the relevant accounting standards, answer the following questions. Your answers must demonstrate your own understandings and applications of relevant accounting standards, but not a direct quote of the standards. a.Use an example to explain what are included in the original cost of property, plant, and equipment when they are initially acquired. b. What is the basic principle for valuing property, plant, and equipment acquired in exchange for other non-monetary assets? c. Use an example to illustrate how gain or loss on disposal is calculated and recorded when an item of property, plant, and equipment is disposed of.Conceptual Question Identify whether or not each of the following items should be capitalized as intangible assets from the following list. Explain your reason with relevant accounting standard. Capitalised Not capitalized Employment costs of staff conducting research activiities Cost of constructing a working model of a new product License purchased to permit production and sale of a product for ten yearsConceptual Question Identify whether or not each of the following items should be capitalized as intangible assets from the following list. Explain your reason with relevant accounting standard. Capitalised Not capitalized Employment costs of staff conducting research activities Cost of constructing a working model of a new product License purchased to permit production and sale of a product for ten years