Exam 12: Intangible Assets and Goodwill

The significant difference between market capitalization and book value of companies like Apple Inc.holding sizeable knowledge assets or intellectual capital is an example of

Which of the following legal fees should be capitalized?

An "indefinite life" for an intangible asset means that

The steps involved in testing goodwill for impairment using ASPE do NOT include

Under ASPE, to determine if there is an impairment loss, compare the

Which of the following is INCORRECT about the measurement of purchased intangible assets?

Similar to impairment models and standards that apply to long-lived tangible assets, the rational entity impairment model applies also to

Which of the following explains the rationale for using "normalized" earnings under the excess-earnings valuation approach?

Which of the following is NOT true of the earnings normalization process?

In 2017, Yupukari Corporation incurred research costs as follows: These costs relate to a product that Yupukari expects to market in 2018.It is estimated that these costs will be recouped by December 31, 2020.How much of these costs could be capitalized in 2017?

Goodwill may be

When determining whether an internally developed intangible asset should be recognized, the process of generating the intangible is usually broken down into the

Which of the following is NOT a factor to be considered in determining a limited-life intangible asset's useful life?

On January 1, 2013, Wellington Corp.purchased a trademark for $400,000, which had an estimated useful life of 16 years.In January 2017, Wellington paid $60,000 for legal fees in a successful defence of the trademark.The amortization expense for this asset for calendar 2017, should be

Use the following information for questions. Jeremiah Inc.is being targeted for acquisition by Argo Corporation.As an analyst for Argo, you are asked to determine the goodwill that, pending various assumptions, may be inherent in this potential transaction. The available information relating to Jeremiah includes the following: Net income for 2014 included a $200,000 gain from the sale of a discontinued operation. -Estimated goodwill by capitalizing average excess earnings at 14% is

If a trademark is developed by the enterprise itself, the costs should be

If the fair value of the net assets acquired in a business combination is greater than the purchase price, the difference is called

Which of the following is NOT a method of calculating goodwill?

Mardaloop Inc.is developing a new process which it plans to sell.During 2016, 2017, the company had capitalized $1.5 million and $0.3 million respectively.An additional $0.4 million was spent in 2018.During 2018 it became apparent that, due to a lack of financial resources, the company would not be able to complete the project. The total amount of capitalized costs relating to this project at the end of 2018 is

Under IFRS, to determine if there is an impairment loss, compare the