How is the fair value allocation of an intangible asset allocated to expense when the asset has no legal, regulatory, contractual, competitive, economic, or other factors that limit its life?
A. No amortization over an indefinite period time.
B. Equally over 20 years.
C. Equally over 20 years with an annual impairment review.
D. Equally over 40 years.
E. No amortization, but annually reviewed for impairment and adjusted accordingly.
Answer: E
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Ted and Alice own their recreational vehicle subject to a security agreement to Third U.S. Bank to secure the repayment of the purchase money loan. Ted and Alice sell their RV to Bob and Carol, who agree to take over the loan payments to the bank. There is no novation with the bank. Under these facts, if Bob and Carol do not make the loan payments, Third U.S. Bank:
a. can sue Bob and Carol only. b. can sue Ted and Alice only. c. can sue Bob, Carol, Ted, and Alice. d. cannot sue anyone but can repossess the RV.
Which of the four-time series component is more likely to exhibit the changes in stock market prices at particular times during the course of one day?
a. Long-term trend c. Seasonal variation b. Cyclical variation d. Random variation
Chris owns Comfy Cabins Campground. In his accounting records, he lists the cabins at their current market value. Which principle is Chris violating?
A) Value entity B) Cost C) Reliability D) Business entity
Net pension liabilities are reported in statements prepared using the economic resource measurement focus and accrual basis of accounting.
Answer the following statement true (T) or false (F)