ACC 304 All Assignments ACC 304 All Assignments | Page 13

15) What is a discount as it relates to zero-interest-bearing notes
payable?
16) Which of the following legal fees should be capitalized?
17) Which of the following costs of goodwill should be amortized over
their estimated useful lives?
18) MaBelle Corporation incurred the following costs in 2015:
Acquisition of R&D equipment with a useful life of 4 years in R&D
projects
$800,000
Start-up costs incurred when opening a new plant 140,000
Advertising expense to introduce a new product 700,000
Engineering costs incurred to advance a product to full production
stage 500,000
What amount should MaBelle record as research & development
expense in 2015?
19) Jenks Corporation acquired Linebrink Products on January 1, 2015
for $8,000,000, and recorded goodwill of $1,500,000 as a result of that
purchase. At December 31, 2015, Linebrink Products had a fair value of
$6,800,000. The net identifiable assets of the Linebrink (excluding
goodwill) had a fair value of $5,800,000 at that time. What amount of
loss on impairment of goodwill should Jenks record in 2015?