Question Details

Which of the following is an intangible asset that results from the purchase of an asset 


1.	Goodwill can be recorded
		a.	when customers keep returning because they are satisfied with the company's products.
		b.	when the company acquires a good location for its business.
		c.	when the company has exceptional management.
		d.	only when there is an exchange transaction involving the purchase of an entire business.
	
	2.	On July 1, 2001, Marlin Company purchased the copyright to Bodine Computer Tutorials for $81,000. It is estimated that the copyright will have a useful life of 5 years with an estimated residual value of $6,000. The amount of Amortization Expense recognized for the year 2001 would be
		a.	$16,200.
		b.	$7,500.
		c.	$15,000.
		d.	$8,100.

	3.	Which of the following is an intangible asset that results from the purchase of an asset for more than its net asset value?
		a.	Goodwill
		b.	Patent
		c.	Trademark
		d.	Trade name

	4.	A franchise should be classified on the balance sheet as a(n)
		a.	current asset.
		b.	prepaid expanse.
		c.	intangible asset.
		d.	tangible capital asset.

	5.	Cost allocation of an intangible asset is referred to as
		a.	amortization.
		b.	depletion.
		c.	accretion.
		d.	capitalization.



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