ACCT 551 RANK Motivated Minds/acct551rank.com ACCT 551 RANK Motivated Minds/acct551rank.com | Page 29

www.acct551rank Question 1. (TCO C) The major problem of accounting for intangibles is determining Question 2. Question : (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 Question 3. Question : (TCO C) A loss on impairment of an intangible asset is the difference between the asset’s Question 4. Question : (TCO C) ELO Corporation purchased a patent for $90,000 on September 1, 2008. It had a useful life of 10 years. On January 1, 2010, ELO spent $22,000 to successfully defend the patent in a lawsuit. ELO feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2010?