When a company that is performing R&D activities is acquired by another company, the acquiring company must allocate a portion of the purchase price to the R&D activities that are purchased, creating an intangible asset called
A) ?intangible development.
B) ?in-process research and development.
C) ?goodwill.
D) ?start-up costs.
C
You might also like to view...
Services are provided for customers who are sent bills for the amount they owe. For this transaction, identify the effect on the accounting equation
a. Assets increase and liabilities increase. b. Assets increase and stockholders' equity increases. c. Liabilities increase and stockholders' equity decreases. d. Liabilities decrease and assets decrease.
What ratios would you use to evaluate operating leverage for a firm?
Pilot-test your questionnaire on a broad cross-section of people, and make any needed improvements as you continue the survey
Indicate whether the statement is true or false
Clover finds a laptop and asks Duffy to hold it for her temporarily. Later, Duffy refuses to return it, claiming that it's not hers. Most likely to establish rights to the laptop, under the doctrine of relativity of title
A. are Clover and Duffy, as concurrent owners. B. is Clover alone. C. is Duffy alone. D. is neither party.