ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 112

12. Internally generated goodwill associated with a business may
be recorded as an asset when a firm offer to purchase that business
unit has been received.
13. All intangibles are subject to periodic consideration of
impairment with corresponding potential write-downs.
14. If the fair value of an unlimited life intangible other than
goodwill is less than its book value, an impairment loss must be
recognized.
15. If market value of an impaired asset recovers after an
impairment has been recognized, the impairment may be reversed in a
subsequent period.
16. The same recoverability test that is used for impairments of
property, plant, and equipment is used for impairments of indefinite-
life 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