Q20 Goodwill is an intangible asset That has a definite life and its cost should be...
Q20
Goodwill is an intangible asset
|
That has a definite life and its cost should be amortized over its useful life. |
||
|
That is recorded when the company has projected earnings in excess of earnings expected for an investment in a similar company in the same industry. |
||
|
That is reviewed for impairment when circumstances indicate that impairment may have occurred. |
||
|
That is reviewed annually to determine whether impairment has occurred. |
Homework Answers
The 1st option is not correct, rest of the options are relevant to accounting of goodwill.Goodwill doesn't have any definite life, neither it gets amortized over the years.
Add Answer to:
Q20
Goodwill is an intangible asset
That has a definite life and its cost should be...
Question 18. In accordance with IAS 38 Intangible Assets, which of the following statements regarding the...
Question 18. In accordance with IAS 38 Intangible Assets, which of the following statements regarding the accounting treatment of an intangible asset is correct? An intangible asset with a finite useful life is tested for impairment annually An intangible asset with an indefinite useful life is tested for impairment when indications exist An intangible asset with a finite useful life must be amortised using the straight line method The assumption that an intangible asset has an indefinite useful life must...
Goodwill should: be written off as soon as possible against retained earnings. absent impairment, not be...
Goodwill should: be written off as soon as possible against retained earnings. absent impairment, not be written off because it has an indefinite life. written off as soon as possible as an expense. amortized over a maximum of forty years. For accounting purposes, goodwill: is recorded whenever a company achieves a level of net income that exceeds the industry average. is recorded when a company purchases another business. is expensed in the period it is recorded because benefits from goodwill...
27. A plant asset originally cost $64,000 and was estimated to have a $4,000 salvage value...
27. A plant asset originally cost $64,000 and was estimated to have a $4,000 salvage value at the end of its 5-year useful life. If at the end of three years, the asset was sold for $12,000, and had accumulated depreciation recorded of $36,000, the company should recognize a ______________ on disposal in the amount of $____________. 28. The cost of a patent should be amortized over its __________________ life or its _______________ life, whichever is shorter. 29. In recording...
Wember Company acquired a subsidiary company on December 31, 2012, and recorded the cost of the intangible assets it acquired as follows: Patent $100,000 Trade name 80,000 Goodwill 150,000 The patent...
Wember Company acquired a subsidiary company on December 31, 2012, and recorded the cost of the intangible assets it acquired as follows: Patent $100,000 Trade name 80,000 Goodwill 150,000 The patent is being amortized by the straight-line method over an expected life of 10 years with no residual value. Amortization has been recorded for the current year. The trade name was considered to have an indefinite life. Because of the success of the subsidiary in the past, Wember has not...
Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year...
Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Jan. 2 Purchased a patent with an estimated useful life of five years for $40,280. The company that sold the patent to Collins registered the patent 10 years ago. Apr.1 Acquired another company and recorded goodwill of $320,700 as part of the purchase. July 1 Acquired a franchise for $234,000. The franchise agreement is renewable without charge and not expected to expire....
Johan Co. has an intangible asset, which it estimates will have a useful life of 10...
Johan Co. has an intangible asset, which it estimates will have a useful life of 10 years, while Abco Co. has goodwill, which has an indefinite life. Which company should report amortization in its financial statements? Johan Abco Yes Yes Yes No No Yes No No
Stiller Company had the following information for its three intangible assets. Patent: A patent was purchased...
Stiller Company had the following information for its three intangible assets. Patent: A patent was purchased for $200,000 on June 30, 2018. Stiller estimated the useful life of the patent to be 15 years. On December 31, 2020, the estimated future cash flows attributed to the patent were $170,000. The fair value of the patent was $150,000. Trademark: A trademark was purchased for $10,000 on August 31, 2019. The trademark is considered to have an indefinite life. The fair value...
Due to rapid turnover in the accounting department, the following transactions involving intangible assets were improper...
Due to rapid turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Riley Co. in the year ended December 31, 2021: Riley developed a new manufacturing process early in the year, incurring research and development costs of $160,000. Of this amount, 45% was considered to be development costs that could be capitalized. Riley recorded the entire $160,000 in the Patents account and amortized it using a 15-year estimated useful life. On July 1, 2021,...
For financial reporting purposes, goodwill: May be recorded whenever a company achieves a level of net...
For financial reporting purposes, goodwill: May be recorded whenever a company achieves a level of net income that exceeds the industry average. Is amortized over its useful life. May be recorded when a company purchases another business. Must be expensed in the period it is recorded because benefits from goodwill are difficult to identify.
In accounting, goodwill O May be recorded when a company purchases another business. Is amortized over...
In accounting, goodwill O May be recorded when a company purchases another business. Is amortized over its useful life. O Must be expensed in the period it is recorded because benefits from goodwill are difficult to identify. O May be recorded whenever a company achieves a level of net income that exceeds the industry average.
Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Jan. 2 Purchased a patent with an estimated useful life of five years for $40,280. The company that sold the patent to Collins registered the patent 10 years ago. Apr.1 Acquired another company and recorded goodwill of $320,700 as part of the purchase. July 1 Acquired a franchise for $234,000. The franchise agreement is renewable without charge and not expected to expire....
Johan Co. has an intangible asset, which it estimates will have a useful life of 10 years, while Abco Co. has goodwill, which has an indefinite life. Which company should report amortization in its financial statements? Johan Abco Yes Yes Yes No No Yes No No
In accounting, goodwill O May be recorded when a company purchases another business. Is amortized over its useful life. O Must be expensed in the period it is recorded because benefits from goodwill are difficult to identify. O May be recorded whenever a company achieves a level of net income that exceeds the industry average.
Most questions answered within 3 hours.
-
List the six general types of information management systems,
and give one logistics application to each...
asked 10 seconds ago -
XYZ corporation uses statistical quality control to monitor the
quality of their product. They have determined...
asked 3 minutes ago -
If a liquid
contains 60% sugar and 40% water through out its composition then
what is...
asked 11 minutes ago -
In testing a new drug, researchers found that 5% of all patients
using it will have...
asked 9 minutes ago -
The data in set A represents prices (with tax included) of a
large cup of regular...
asked 21 minutes ago -
How do neuropsychological assessments provide information about
impairment? How could this information be misused?
asked 13 minutes ago -
Define SNP and elaborate various type of SNPs and their
importance in pharmacogenetics?
asked 17 minutes ago -
Description
There are 4 classes, Figure is the base class，both Triangle,
Rectangle and Circle are all...
asked 18 minutes ago -
What will the standard deviation of these exam grades be? A
square bracket means inclusive, so...
asked 28 minutes ago -
Beginning Retained Earnings are $ 79 comma 000 $79,000; sales
are $ 31 comma 700 $31,700;...
asked 30 minutes ago -
Please explain/demonstrate how to use NLTK to test unigram,
bigram, and trigram character models on guessing...
asked 36 minutes ago -
what you feel is most important to you and why regarding your
typing skills?
asked 37 minutes ago