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Question 15. Question :
(TCO D) On October 1, 2010, Bartley
Corporation issued 5%, 10-year bonds with a face value of $500,000 at
104. Interest is paid on October 1 and April 1, with any premiums or
discounts amortized on a straight-line basis.
The entry to record the issuance of the bonds would include a
(TCO C) Intangible assets may be internally generated or purchased
from another party. In either case, the cost that should be included in the
initial valuation of the asset is an issue.
Instructions:
- Identify the typical costs included in the cash purchase of an intangible
asset.
- Discuss how to determine the cost of an intangible asset acquired in a
noncash transaction.
- Describe how to determine the cost of several intangible assets
acquired in a basket purchase. Provide a numerical example involving
intangibles being acquired for a total price of $120,000.
Question 2.
Question :
(TCO C) Recently, a group of university
students decided to incorporate for the purposes of selling a process to
recycle the waste product from manufacturing cheese. Some of the
initial costs involved were legal fees and office expenses incurred in
starting the business, state incorporation fees, and stamp taxes. One
student wishes to charge these costs against revenue in the current period.
Another student wishes to defer these costs and amortize them in the
future. Which student is correct and why?