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1.( TCO C) Under current accounting practice, intangible assets are classified as( Points: 5)
2.( TCO C) Which of the following intangible assets should not be amortized?( Points: 5)
3.( TCO C) The intangible asset goodwill may be( Points: 5)
4.( TCO C) ELO Corporation purchased a patent for $ 90,000 on September 1, 2008. It had a useful life of ten 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 five years. What amount should be reported for patent amortization expense for 2010?( Points: 5)
5.( TCO C) During 2011, Bond Company purchased the net assets of May Corporation for $ 1,000,000. On the date of the transaction, May had $ 300,000 of liabilities. The fair value of May ' s assets when acquired were as follows:
6.( TCO D) Which of the following is a condition for accruing a liability for the cost of compensation for future absences?( Points: 5)
7.( TCO D) Which of the following taxes does not represent a payroll deduction a company may incur?( Points: 5)
8.( TCO D) Assume that a manufacturing corporation has( 1) good quality control,( 2) a one-year operating cycle,( 3) a relatively stable pattern of annual sales, and( 4) a continuing policy of guaranteeing new products against defects for three years that has resulted in material but rather stable warranty repair and replacement costs. Any liability for the warranty( Points: 5)