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Question 1. (TCO C) The major problem of accounting for
intangibles is determining
fair market value.
separability.
salvage value.
useful life.
Question 2. (TCO C) Wriglee, Inc. went to court this year and
successfully defended its patent from infringement by a competitor.
The cost of this defense should be charged to
patents, and amortized over the legal life of the patent.
legal fees, and amortized over 5 years or less.
expenses of the period.
patents, and amortized over the remaining useful life of the
patent.
Question 3. (TCO C) Purchased goodwill should