Reference no: EM132964596

Problem 1: Companies should evaluate indefinite life intangible assets at least annually for:

a. recoverability.

b. amortization.

c. impairment.

d. estimated useful life.

e. Recapitalization.

Problem 2: Which intangible assets are amortized?

Limited-Life Indefinite-Life

a. Yes Yes

b. Yes No

c. No Yes

d. No No

Problem 3: The cost of purchasing patent rights for a product that might otherwise have seriously competed with one of the purchaser's patented products should be

a. charged off in the current period.

b. amortized over the legal life of the purchased patent.

c. added to factory overhead and allocated to production of the purchaser's product.

d. amortized over the remaining estimated life of the original patent covering the product whose market would have been impaired by competition from the newly patented product.