Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 3, Problem 8P
If no legal, regulatory, contractual, competitive, economic, or other factors limit the life of an intangible asset, the asset’s assigned value is allocated to expense over which of the following?
a. 20 years.
b. 20 years with an annual impairment review.
c. Infinitely.
d. Indefinitely (no amortization) with an annual impairment review until its life becomes finite.
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If no legal, regulatory, contractual, competitive, economic, or other factors limit the life of an intangible asset, the asset’s assigned value is allocated to expense over which of the following?a. 20 years.b. 20 years with an annual impairment review.c. Infinitely.d. Indefinitely (no amortization) with an annual impairment review until its life becomes finite.
If no legal, regulatory, contractual, cempetative, economic, or other factors limit the life of an intangible asset's assigned value is allocated to expense over which of the following?
A. Equally over 20 years.
B. Equally over 40 years.
C. Equally over 20 years with an annual impairment review.
D. No amortization, but annually reviewed for impairment and adjusted accordingly.
E. No amortization over an indefinite period of time.
An intangible asset with a finite useful life should be amortised over:
O a. A period at the discretion of management.
O b. Its expected useful life.
OC Five years.
O d. No foreseeable limit.
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- To receive economic benefit from an intangible asset, a) The asset must be used more than two years b) The asset must be used for six months c) The asset must be used for a month d) The asset must be used more than one yeararrow_forwardA certain company makes it a policy that for any new piece of equipment the annual depreciation cost should not exceed 10% of the original cost at any time with no salvage value. Determine the length of service life necessary if the depreciation method used is: a. Straight Line Method b. Sinking Fund Method at 8% c. SYD methodarrow_forwardIf an asset book-depreciates by the DDB method over a 10-year period, how long will it take to reach its salvage value if the estimated salvage is 20% of the first cost? Remember, assets can continue to depreciate after they have reached their salvage value.arrow_forward
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