16. The same recoverability test that is used for impairments of property, plant, and equipment is used for impairments of indefinitelife intangibles.
17. Periodic alterations to existing products are an example of research and development costs.
18. Research and development costs that result in patents may be capitalized to the extent of the fair value of the patent.
19. Research and development costs are recorded as an intangible asset if it is felt they will provide economic benefits in future years.
20. Contra accounts must be reported for intangible assets in a manner similar to accumu-lated depreciation and property, plant, and equipment.
True False Answers— Conceptual MULTIPLE CHOICE— Conceptual
21. Which of the following does not describe intangible assets? a. They lack physical existence. b. They are financial instruments. c. They provide long-term benefits. d. They are classified as long-term assets.
22. Which of the following characteristics do intangible assets possess?