Question Details

The entry to record patent amortization usually includes 


1.	Depletion is
	
2.	The method most commonly used to compute depletion is the
.

3.	In computing depletion, residual value is

	4.	If a mining company extracts 2,000,000 tons in a period but only sells 1,600,000 tons,

	5.	A coal company invests €16 million in a mine estimated to have 20 million tons of coal and no residual value. It is expected that the mine will be in operation for 5 years. In the first year, 1,000,000 tons of coal are extracted and sold. What is the depletion expense for the first year?

6.	Accumulated Depletion

	7.	On July 4, 2011, Wyoming Mining Company purchased the mineral rights to a granite deposit for $1,200,000. It is estimated that the recoverable granite will be 400,000 tons. During 2010, 100,000 tons of granite was extracted and 60,000 tons were sold. The amount of the Depletion Expense recognized for 2011 would be

	8.	Depletion expense is computed by multiplying the depletion cost per unit by the
a.	total estimated units.
b.	total actual units.
c.	number of units extracted.
d.	number of units sold.

9.	On January 1, 2011, Cooper Tree Company (CTC) purchases a copper mine for €10,000,000. The mine is estimated to have 20 million tons of copper and no residual value. CTC estimates that it will take 10 years to extract all the copper contained in the mine. CTC spends an additional €2,000,000 during the early part of 2011 preparing the mine. During 2011, CTC extracts and sells 3 million tons of copper. On CTC- December 31, 2011 statement of financial position, at what net amount is the copper mine reported? 

10.	On January 1, 2011, Cooper Tree Company (CTC) purchases a copper mine for €10,000,000. The mine is estimated to have 20 million tons of copper and no residual value. CTC estimates that it will take 10 years to extract all the copper contained in the mine. CTC spends an additional €2,000,000 during the early part of 2011 preparing the mine. During 2011, CTC extracts 3 million tons of copper; however due to price fluctuations none of the copper is sold during 2011. On CTC- financial statement for 2011, how would the depletion associated with the extracted copper be reported? 

11.	Goodwill

12.	Research and development costs

	13.	Intangible assets are the rights and privileges that result from ownership of long-lived assets that

14.	Identify the item below where the terms are not related.

15.	A patent should

	16.	The entry to record patent amortization usually includes a credit to

17.	The cost of successfully defending a patent in an infringement suit should be

18.	An asset that cannot be sold individually in the market place is
a.	a patent.
b.	goodwill.

	19.	Goodwill can be recorded

20.	On July 1, 2011, Jenks Company purchased the copyright to Jackson Computer tutorials for $135,000. It is estimated that the copyright will have a useful life of 5 years with an estimated residual value of $10,000. The amount of Amortization Expense recognized for the year 2011 would be




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