At the end of 2016, Mirror Productions determined that one of its copyrights was worthless. The copyright had a cost of $320,000 . The copyright had been amortized for 8 years of its estimated 25-year legal life. Which of the following statements is the justification for removing the remaining cost of the copyright from the accounting records?
a. The copyright no longer represents a future benefit to the company.
b. The federal government does not allow copyrights to be recorded as assets once they are deemed worthless.
c. The cost of the copyright represents an obligation to return capital contributions to the stockholders.
d. The cost of the copyright has usefulness that will impact the net income of future accounting periods.
a
You might also like to view...
In horizontal analysis, each item is expressed as a percentage of the
a. base year figure b. retained earnings figure c. total assets figure d. net income figure
The work of 18th-century patriot Thomas Paine demonstrates ________
A) the persuasive power of early American communicators B) that poetry can be highly persuasive C) the colonists' love for the written word D) how much the British despised American freedom
____ focuses only on factors that change from one course of action to another
a. Incremental analysis b. Margin of safety c. Operating leverage d. A break-even chart
During the closing process, some balance sheet accounts are closed and end the period with a zero balance
Indicate whether the statement is true or false