Test Bank for Intermediate Accounting, Sixteenth Edition WITH VERIFIED ANSWERS

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CHAPTER 12 INTANGIBLE ASSETS IFRS questions are available at the end of this chapter. TRUE-FALSE—Conceptual Answer No. Description F 1. Characteristics of intangible assets. F 2. Recording int ... ernally generated intangibles. T 3. Amortizing limited-life intangibles. F 4. Amortization of limited-life intangible assets. T 5. Amortization of limited-life intangibles. F 6. Capitalizing trademark costs. T 7. Accounting for a customer list. F 8. Amortization of patents. T 9. Modification of an existing patent. T 10. Basic concept of goodwill. F 11. Goodwill as master valuation account. T 12. Internally generated goodwill. F 13. Recording internally generated goodwill. T 14. Impairment of intangibles. T 15. Recognition of impairment loss. T 16. Impaired asset and recoverable amount. F 17. Impairment of intangible assets. F 18. Recovery of impairment loss. F 19. Impairment of intangibles. F 20. Reporting intangible assets. F 21. Treatment of research and development costs. F 22. Recording research and development costs. F 23. Start-up costs and initial operating losses. T 24. Research and development costs. F 25. Example of research and development costs. MULTIPLE CHOICE—Conceptual Answer No. Description b 26 Characteristics of intangible assets. c 27 Characteristics of intangible assets. a 28 Characteristics of intangible assets. c 29. Accounting for internally-created intangibles. a 30. Treatment of internally generated costs. b 31. Amortization methods for intangible assets. d 32. Cost of intangible asset. d 33. Factors in determining useful life. b S34. Classifying intangible assets. c 35. Impairment of intangibles. a 36. Determining intangible asset useful life. b 37. Amortization of intangibles. d 38. Patent amortization. c 39. Treatment of patent legal defense costs. Test Bank for Intermediate Accounting, Sixteenth Edition MULTIPLE CHOICE—Conceptual (cont.) Answer No. Description d 40. Legal fees associated with patent infringement. b 41. Identification of intangible assets. c 42. Amortization of intangible assets. a 43. Entry to record patent amortization. c 44. Capitalizing trademark costs. c 45. Contract-related intangible assets. a 46. Definition of copyrights. b 47. Customer-related intangible assets. d 48. Technology-related intangible assets. c 49. Classifying intangible assets. a 50. Classifying intangible assets. c 51. Composition of goodwill. b 52. When to record goodwill. d 53. Intangibles during acquisition of company. c 54. Separability of goodwill. b 55. Goodwill definition. a 56. Reporting of "bargain purchase." d 57. Accounting for goodwill. a 58. Recording goodwill. b 59. Definition of a bargain purchase. b 60. Impairment of intangible asset. d 61. Recoverability test. c S62. Impairment test for indefinite-life intangibles. b P63. Carrying value of an intangible. a 64. Reporting of Goodwill d 65. Intangible asset disclosure. d 66. Trade name amortization. d 67. Patent amortization. d 68. Reporting intangibles. b 69. Amortization expense. d 70. Reporting goodwill. a 71. Classification of R & D costs. c 72. Costs excluded from R & D expense. b 73. Depreciation of laboratory building used in R & D. a 74. Operating losses during start-up period. d P75. Accounting for organization costs. a S76. Classification of R & D expense. d 77. Classification of R & D expense. a 78. Capitalization of R & D costs. b 79. R & D accounting principles. d 80. Expensing R & D costs. c P81. Identify R & D costs. c 82. Successful defense of a patent. d 83. R & D costs. d 84. Identify a non-R & D cost. P These questions also appear in the Problem-Solving Survival Guide. S These questions also appear in the Study Guide. 12 - 2 Intangible Assets MULTIPLE CHOICE—Computational Answer No. Description d 85. Valuation of patent. d 86. Valuation of patent. c 87. Valuation of patent. d 88. Basket purchase of patents. c 89. Intangible asset amortization. c 90. Intangible asset amortization. b 91. Computing patent amortization expense. b 92. Computing patent amortization expense. b 93. Computing patent amortization expense. c 94. Calculate total intangible assets. b 95. Determine amount of worthless patent to be written off. b 96. Calculate patent amortization. a 97. Calculate trademark amortization. b 98. Calculate patent amortization. c 99. Calculate goodwill amount. c 100. Calculate goodwill amount. d 101. Calculate goodwill amount. a 102. Calculate goodwill impairment. b 103. Proper accounting when fair value of net assets acquired exceeds cost. b 104. Fair value of identifiable net assets. c 105. Fair value of identifiable net assets. b 106. Calculate impairment loss. c 107. Calculate patent carrying amount. d 108. Calculate patent carrying amount. b 109. Calculate loss on impairment of goodwill. b 110. Calculate loss on impairment of goodwill. d 111. Intangible asset total. c 112. Calculate R & D expense. c 113. Calculate R & D expense. a 114. Calculate R & D expense. a 115. Calculate R & D expense. c 116. Calculate R & D expense 12 - 3 Test Bank for Intermediate Accounting, Sixteenth Edition MULTIPLE CHOICE—CPA Adapted Answer No. Description a 117. Determine capitalized patent costs. c 118. Valuation of patent exchanged for common stock. d 119. Valuation of patent exchanged for treasury stock. c 120. Valuation and amortization of a patent. c 121. Amortization of a patent. d 122. Amortization of a copyright. c 123. Capitalization of legal fees. a 124. Amortization of goodwill. c 125. Calculate R & D expense. a 126. Determine R & D expense. BRIEF EXERCISES Item Description BE12-127 Amortization of patent. BE12-128 Calculate patent carrying amount. BE12-129 Calculate goodwill amount. BE12-130 Impairment of patent. BE12-131 Goodwill impairment. EXE [Show More]

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