Indicate whether each of the following statements is true or false.________ a) A trademark has an identifiable legal lifetime.________ b) U.S. GAAP requires that research and development costs be capitalized as assets and then expensed over a reasonable period of time.________ c) A patent is amortized over the longer of its legal or useful life.________ d) The entry to record the amortization of a patent includes a debit to Amortization Expense and a credit to Patent._____e) The capitalized cost of a trademark includes the cost to develop the trademark and to defend it.
What will be an ideal response?
a) F b) F c) F d) T e) T
a) This is false. A trademark can be used indefinitely as long as the company that owns the trademark renews its registration.
b) This is false. U.S. companies must expense research and development costs.
c) This is false. A patent is amortized of the shorter, not longer, of its legal or useful life.
d) This is true. Typically, companies do not use a contra asset account similar to accumulated depreciation to record amortization. Instead, the Patent account is decreased (with a credit) by the amount of the amortization.
e) This is true. Development of a trademark is capitalized, as well as continuing expenditures related to defending the trademark against infringement.
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A communications analysis involves looking at communications by the company itself, by competitors, and industry communications
Indicate whether the statement is true or false
Clare, a florist, opened a new store and wanted to purchase a new refrigeration display cabinet for fresh-flower arrangements. She entered into a deal with Alpha Refrigeration Systems for two refrigeration units at $600 each. But, after delivering the units, the salesperson demanded another $100 as delivery charges, which was not mentioned in the deal. Identify the win-lose strategy used by the salesperson.
A. Browbeating B. Trial balloon C. Lowballing D. Good guy-bad guy routine E. Red herring
Negotiating parties always negotiate by ________.
Fill in the blank(s) with the appropriate word(s).
If a new project generates a positive residual income, the
a. project's return on investment is less than the target rate. b. project's return on investment is greater than the target rate. c. project's return on investment is equal to the target rate. d. relationship between the project's return on investment and the target rate cannot necessarily be determined.