Questions from Intermediate Accounting

Q: If intangibles are acquired for stock, how is the cost of

If intangibles are acquired for stock, how is the cost of the intangible determined?

Q: Intangibles have either a limited useful life or an indefinite useful life

Intangibles have either a limited useful life or an indefinite useful life. How should these two different types of intangibles be amortized?

Q: What are the two main characteristics of intangible assets?

What are the two main characteristics of intangible assets?

Q: Use the information provided in BE12-7. Assume that the

Use the information provided in BE12-7. Assume that the fair value of the division is estimated to be $750,000 and the implied goodwill is $350,000. Prepare Waters’s journal entry, if necessary, to re...

Q: In its 2009 annual report, Campbell Soup Company reports beginning-

In its 2009 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $6,474 million, end-of-the-year total assets of $6,056 million, total sales of $7,586 million, and net in...

Q: Francis Corporation purchased an asset at a cost of $50,

Francis Corporation purchased an asset at a cost of $50,000 on March 1, 2012. The asset has a useful life of 8 years and a salvage value of $4,000. For tax purposes, the MACRS class life is 5 years. C...

Q: Indicate whether the following items are capitalized or expensed in the current

Indicate whether the following items are capitalized or expensed in the current year. (a) Purchase cost of a patent from a competitor. (b) Research and development costs. (c) Organizational costs. (d)...

Q: Ottawa Corporation owns machinery that cost $20,000 when purchased

Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2009. Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $...

Q: Use the information presented for Ottawa Corporation in BE10-14,

Use the information presented for Ottawa Corporation in BE10-14, but assume the machinery is sold for $5,200 instead of $10,500. Prepare journal entries to (a) Update depreciation for 2013 and (b) Rec...

Q: Karen Austin Corporation has capitalized software costs of $800,000

Karen Austin Corporation has capitalized software costs of $800,000, and sales of this product the first year totaled $420,000. Karen Austin anticipates earning $980,000 in additional future revenues...