A) does not allow firms to amortize goodwill in measuring net income each period. B) requires that an annual test for impairment in the value of goodwill be performed each period. C) requires the write-down of goodwill and recognition of an impairment loss if an impairment in the value of goodwill exists. D) all of the above E) none of the above A) does not allow firms to amortize goodwill in measuring net income each period. B) requires that an annual test for impairment in the value of goodwill be performed each period. C) requires the write-down of goodwill and recognition of an impairment loss if an impairment in the value of goodwill exists. D) all of the above E) none of the above

An engineering firm has decided to construct its own office building.The construction will be partially financed through a construction loan and any remainder will be financed from internally generated funds.The internal accountants have collected the following information concerning the construction. $\begin{array}{llll} & \text { Average Balance } & \text { Construction } & \text { Other } \\ \text { Year } & \text { Construction Account } & \text { Debt } @ 10 \% & \text { Debt } @12 \%\\ 1 & \$ 1,000,000 & \$ 1,000,000 & \$ 500,000 \\ 2 & \$ 1,500,000 & \$ 1,000,000 & \$ 250,000 \\ 3 & \$ 2,000,000 & \$ 800,000 & \$ 200,000 \end{array}$ Required: Determine the amount, if any, of capitalized interest cost for each year. a. Year 1 b. Year 2 c. Year 3

The answer of An engineering firm has decided to construct...

Exam 10: Long-Lived Tangible and Intangible Assets

Marley Corporation has a machine which costs $10,000, has an estimated salvage value of $400, and has an expected service life of five years. The straight-line (time) method annual depreciation is

(Multiple Choice)

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Question 141

U.S.GAAP and IFRS require firms to treat expenditures for maintenance and repairs as expenses of the period as incurred but treat expenditures for improvements as assets (which firms subsequently depreciate or amortize).

(True/False)

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Question 142

Accounting for the impairment of long-lived assets is complex because U.S.GAAP and IFRS requirements differ for various assets.

(True/False)

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Question 143

U.S.GAAP and IFRS distinguish three categories of long-lived assets for purposes of measuring and recognizing impairment losses.

(True/False)

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Question 144

U.S.GAAP requires firms to recognize an impairment loss on a nonamortized intangible other than goodwill whenever the carrying value of the asset exceeds its

(Multiple Choice)

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Question 145

How is the acquisition cost treated over the life of tangible and intangible assets?

(Essay)

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Question 146

U.S.GAAP

(Multiple Choice)

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Question 147

Which method of depreciation will result in the greatest depreciation charge in the last year of the asset's life?

(Multiple Choice)

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Question 148

Which of the following is/are not true?

(Multiple Choice)

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Question 149

Which of the following is/are true about holding gains on assets?

(Multiple Choice)

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Question 150

An engineering firm has decided to construct its own office building.The construction will be partially financed through a construction loan and any remainder will be financed from internally generated funds.The internal accountants have collected the following information concerning the construction. Average Balance Construction Other Year Construction Account Debt @10\% Debt @12\% 1 \ 1,000,000 \ 1,000,000 \ 500,000 2 \ 1,500,000 \ 1,000,000 \ 250,000 3 \ 2,000,000 \ 800,000 \ 200,000 Required: Determine the amount, if any, of capitalized interest cost for each year. a. Year 1 b. Year 2 c. Year 3

(Essay)

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Question 151

(CMA adapted, Dec 86 #12) A patent is granted by the federal government to an inventor for a period of several years.Costs that are capitalized with regard to a patent would include

(Multiple Choice)

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Question 152

Chen Company Chen Company office equipment costs $10,000, has an expected life of four years and a salvage value of $400.The firm has depreciated this asset on a straight-line basis.The firm has recorded depreciation for two years and then sells the equipment at midyear in the third year. If the Chen Company sells the equipment for $3,000 cash, the entry to record the sale would be as follows:

(Multiple Choice)

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Question 153

Firms that incur research and development costs to develop a patented product:

(Multiple Choice)

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Question 154

Some assets, such as a space shuttle, are not readily salable at the end of their useful lives, and retiring them may impose substantial costs.Which of the following is true?

(Multiple Choice)

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Question 155

Under U.S.GAAP, sometimes a firm sells or otherwise disposes of a major division or segment of its business during the year or contemplates its sale or disposal within a foreseeable time after the end of the accounting period.If so, it must disclose separately any income, gains, and losses related to that division or segment.The separate disclosure appears in the

(Multiple Choice)

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Question 156

The cost of long-lived assets with an indefinite life

(Multiple Choice)

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Question 157

Although the legal life of a drug patent is 20 years, the expected economic life of the drug is often less than half of that period.

(True/False)

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Question 158

The straight-line (use) method is the most common depreciation method for financial reporting.

(True/False)

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Question 159

Which of the following is true regarding asset abandonment?

(Multiple Choice)

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Question 160

Showing 141 - 160 of 182

Marley Corporation has a machine which costs $10,000, has an estimated salvage value of $400, and has an expected service life of five years. The straight-line (time) method annual depreciation is

U.S.GAAP and IFRS require firms to treat expenditures for maintenance and repairs as expenses of the period as incurred but treat expenditures for improvements as assets (which firms subsequently depreciate or amortize).

Accounting for the impairment of long-lived assets is complex because U.S.GAAP and IFRS requirements differ for various assets.

U.S.GAAP and IFRS distinguish three categories of long-lived assets for purposes of measuring and recognizing impairment losses.

U.S.GAAP requires firms to recognize an impairment loss on a nonamortized intangible other than goodwill whenever the carrying value of the asset exceeds its

How is the acquisition cost treated over the life of tangible and intangible assets?

U.S.GAAP

Which method of depreciation will result in the greatest depreciation charge in the last year of the asset's life?

Which of the following is/are not true?

Which of the following is/are true about holding gains on assets?

(CMA adapted, Dec 86 #12) A patent is granted by the federal government to an inventor for a period of several years.Costs that are capitalized with regard to a patent would include

Firms that incur research and development costs to develop a patented product:

Some assets, such as a space shuttle, are not readily salable at the end of their useful lives, and retiring them may impose substantial costs.Which of the following is true?

The cost of long-lived assets with an indefinite life

Although the legal life of a drug patent is 20 years, the expected economic life of the drug is often less than half of that period.

The straight-line (use) method is the most common depreciation method for financial reporting.

Which of the following is true regarding asset abandonment?

Introduction to Business Activities and Overview of Financial Statements and the Reporting Process

The Basics of Record Keeping and Financial Statement Preparation: Balance Sheet

The Basics of Record Keeping and Financial Statement Preparation: Income Statement

Balance Sheet: Presenting and Analyzing Resources and Financing

Income Statement: Reporting Results of Operating Activities

Statement of Cash Flows

Introduction to Financial Statement Analysis

Revenue Recognition, Receivables, and Advances From Customers

Working Capital

Notes, Bonds, and Leases

Liabilities: Off-Balance Sheet Financing, Retirement Benefits, and Income Taxes

Marketable Securities and Derivatives

Intercorporate Investments in Common Stock

Shareholders Equity: Capital Contributions and Distributions

Statement of Cash Flows: Another Look

Synthesis and Extensions

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