Intangible Asset MCQs
- ?Which of the following is not considered to be an intangible asset?
- ?A recognized intangible asset is amortized over its useful life
- ?Hansen, Inc., purchased a patent at the beginning of Year 1 for $22,100 that was to be
amortized over 17 years. On July 1 of Year 8, Hansen incurred ...
- ?Which of the following costs associated with an internally developed patent should be
Research and Patent
- ?On July 1, Broadstreet Corporation acquired a patent on its new manufacturing process, which streamlines its production operation. The cost of the pat...
- ?Which of the following expenditures qualifies for asset capitalization?
- ?During the year just ended, Jase Co. incurred research and development costs of $136,000 in its laboratories relating to a patent that was granted on ...
- ?A purchased patent has a remaining legal life of 15 years. It should be
- ?Under IFRS, an entity that acquires an intangible asset may use the revaluation model for
subsequent measurement only if
- ?Legal fees incurred by a company in defending its patent rights should be capitalized when
the outcome of litigation is
- ?Gray Co. was granted a patent on January 2, Year 5, and appropriately capitalized $45,000
of related costs. Gray was amortizing the patent over its e...
- ?Which of the following assets, if any, acquired this year in an exchange transaction is(are)
- ?Goodwill should be tested for value impairment at which of the following levels?
- ?A company should recognize goodwill in its balance sheet at which of the following points?
- ?On December 31, year 3, Byte Co. had capitalized software
costs of $600,000 with an economic life of four years. Sales for
year 4 were 10% of expect...
- ?On January 2, year 4, Judd Co. bought a trademark from
Krug Co. for $500,000. Judd retained an independent consultant,
who estimated the trademark’s...
- ?On January 2, year 4, Paye Co. purchased Shef Co. at a cost
that resulted in recognition of goodwill of $200,000. During the
first quarter of year 4...
- ?Northern Airline purchased airline gate rights at Newark
International Airport for $2,000,000 with a legal life of five years.
However, Northern has...
- ?On January 2, year 1, Lava, Inc. purchased a patent for a new
consumer product for $90,000. At the time of purchase, the patent
was valid for fiftee...
- ?What does ASC Topic 350 require with respect to accounting
- ?Which of the following statements concerning patents is
- ?Under ASC Topic 350, goodwill should be tested periodically
- ?Sloan Corporation is performing its annual test of the impairment
of goodwill for its Financing reporting unit. It has determined
that the fair valu...
- ?Wilson Corporation is performing the test of impairment of
its Technology reporting unit at 9/30/Y4. In the first step of the
process, Wilson has va...
- ?Under IFRS, what valuation methods are used for intangible
- ?Under IFRS, an entity that acquires an intangible asset may
use the revaluation model for subsequent measurement only if
- ?Under IFRS, which of the following is a criterion that must
be met in order for an item to be recognized as an intangible asset
other than goodwill?...
- ?Under IFRS, intangible assets with indefinite lives are
tested for impairment
- ?Under IFRS, an intangible asset is considered to be impaired
if its carrying value is greater than its recoverable amount.
The recoverable amount is...