www . acct553study . com
1 . ( TCO C ) Under current accounting practice , intangible assets are classified as ( Points : 5 )
2 . ( TCO C ) Which of the following intangible assets should not be amortized ? ( Points : 5 )
3 . ( TCO C ) The intangible asset goodwill may be ( Points : 5 )
4 . ( TCO C ) ELO Corporation purchased a patent for $ 90,000 on September 1 , 2008 . It had a useful life of ten years . On January 1 , 2010 , ELO spent $ 22,000 to successfully defend the patent in a lawsuit . ELO feels that as of that date , the remaining useful life is five years . What amount should be reported for patent amortization expense for 2010 ? ( Points : 5 )
5 . ( TCO C ) During 2011 , Bond Company purchased the net assets of May Corporation for $ 1,000,000 . On the date of the transaction , May had $ 300,000 of liabilities . The fair value of May ' s assets when acquired were as follows :
6 . ( TCO D ) Which of the following is a condition for accruing a liability for the cost of compensation for future absences ? ( Points : 5 )
7 . ( TCO D ) Which of the following taxes does not represent a payroll deduction a company may incur ? ( Points : 5 )
8 . ( TCO D ) Assume that a manufacturing corporation has ( 1 ) good quality control , ( 2 ) a one-year operating cycle , ( 3 ) a relatively stable pattern of annual sales , and ( 4 ) a continuing policy of guaranteeing new products against defects for three years that has resulted in material but rather stable warranty repair and replacement costs . Any liability for the warranty ( Points : 5 )