Multiple Choice
At the end of 2013, Mirror Productions determined that one of its copyrights was worthless.The copyright had a cost of $320,000.The copyright had been amortized for 8 years of its estimated 25-year legal life.Which of the following statements is the justification for removing the remaining cost of the copyright from the accounting records?
A) The copyright no longer represents a future benefit to the company.
B) The federal government does not allow copyrights to be recorded as assets once they are deemed worthless.
C) The cost of the copyright represents an obligation to return capital contributions to the stockholders.
D) The cost of the copyright has usefulness that will impact the net income of future accounting periods.
Correct Answer:
Verified
Correct Answer:
Verified
Q29: The accounting life of intangible assets is
Q37: How are the cash flow effects from
Q42: Miguel Foods, Inc.purchased a patent at the
Q46: Which of the following costs related to
Q51: Goodwill can be recorded as an asset
Q84: Costs incurred related to plant assets that
Q102: _ depreciation is the GAAP depreciation method
Q113: International accounting standards require companies to revalue
Q159: Because plant and equipment are reported as
Q178: Arena, Inc.uses straight-line depreciation for its equipment.Arena