According to the most current FASB standards, intangible assets acquired in a basket purchase that does not represent the acquisition of an entire business should be
a. valued by allocating the total purchase price according to the relative fair values of all assets acquired, regardless of whether the assets are separately tradable or contract based.
b. valued by allocating the total purchase price according to the relative fair values only of intangible assets that are separately tradable or contract based.
c. valued by recording separately traded and contract based intangible assets at their individual fair values with any unallocated purchase price being recognized as goodwill.
d. valued by recording separately traded and contract based intangible assets at their individual fair values with any unallocated purchase price being expensed in the year of acquisition.
A
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In the two-period model, suppose a household's income in the first period is $40,000, income in the second period is $50,000, and the real interest rate is 25 percent. The government proposes to give the household a tax rebate of $5,000 in the first period, but will tax the household an additional $5,000 × 1.25 = $6,250 in the second period. The household is ____ under the government's tax rebate plan compared with before.
A. better off B. worse off C. equally well off D. possibly better off and possibly worse off
Bonds are sold at a premium if the
a. issuing company has a better reputation than other companies in the same business. b. market rate of interest was less than the face rate at the time of issue. c. market rate of interest was more than the face rate at the time of issue. d. company will have to pay a premium to retire the bonds.
The generally accepted accounting principles for trading securities include all of the following except
A) initially recording the investment at cost. B) subsequently valuing the investment at fair value. C) including unrealized holding gains and losses as a component of shareholders' equity. D) including interest and dividend revenue as part of income.
One way to achieve geographic selectivity is by using a magazine that is targeted toward a particular area of interest.
Answer the following statement true (T) or false (F)