Questions from Intermediate Accounting

Q: Braxton Inc. is considering the write-off of a limited

Braxton Inc. is considering the write-off of a limited-life intangible because of its lack of profitability. Explain to the management of Braxton how to determine whether a write-off is permitted....

Q: Explain how losses on impaired intangible assets should be reported in income

Explain how losses on impaired intangible assets should be reported in income.

Q: Simon Company determines that its goodwill is impaired. It finds that

Simon Company determines that its goodwill is impaired. It finds that its implied goodwill is $360,000 and its recorded goodwill is $400,000. The fair value of its identifiable assets is $1,450,000....

Q: What is the nature of research and development costs?

What is the nature of research and development costs?  

Q: Research and development activities may include (a) personnel costs,

Research and development activities may include (a) personnel costs, (b) materials and equipment costs, and (c) indirect costs. What is the recommended accounting treatment for these three types of...

Q: In 2013, Austin Powers Corporation developed a new product that will

In 2013, Austin Powers Corporation developed a new product that will be marketed in 2014. In connection with the development of this product, the following costs were incurred in 2013: research and...

Q: Recently, a group of university students decided to incorporate for the

Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese. Some of the initial costs involved were...

Q: An intangible asset with an estimated useful life of 30 years was

An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2004, for $540,000. On January 1, 2014, a review was made of intangible assets and their expected service liv...

Q: Celine Dion Corporation purchases a patent from Salmon Company on January 1

Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2014, for $54,000. The patent has a remaining legal life of 16 years. Celine Dion feels the patent will be useful for 10...

Q: Use the information provided in BE12-1. Assume that at

Use the information provided in BE12-1. Assume that at January 1, 2016, the carrying amount of the patent on Celine Dion’s books is $43,200. In January, Celine Dion spends $24,000 successfully...