Acct 551 Midterm Exam

ACCT 551 Midterm Exam

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ACCT 551 Midterm Exam

1. Question:: (TCO C) The cost of an intangible asset includes all of the following except

2. Question: : (TCO C) Which of the following is not an intangible asset?

3. Question: : (TCO C) The intangible asset goodwill may be

4. Question: : (TCO C) ELO Corporation purchased a patent for $90,000 on September 1, 2008. It had a useful life of ten years. On March 1, 2010, ELO spent $17,500 to successfully defend the patent in a lawsuit. ELO feels that as of that date, the remaining useful life is five years. What amount should be reported for patent amortization expense for 2010?

5. Question: : (TCO C) Floyd Company purchases Haeger Company for $800,000 cash on January 1, 2011. The book value of Haeger Company’s net assets, as reflected on its December 31, 2010 balance sheet, is $620,000. An analysis by Floyd on December 31, 2010 indicates that the fair value of Haeger’s tangible assets exceeded the book value by $60,000, and the fair value of identifiable intangible assets was equal to book value. How much goodwill should be recognized by Floyd Company when recording the purchase of Haeger Company?

6. Question: : (TCO D) An employee’s net (or take-home) pay is determined by gross earnings minus amounts for income tax withholdings and the employee’s

7. Question: : (TCO D) Assume that a manufacturing corporation has (1) good quality control, (2) a one-year operating cycle, (3) a relatively stable pattern of annual sales, and (4) a continuing policy of guaranteeing new products against defects for one year that has resulted in material but rather stable warranty repair and replacement costs. Any liability for the warranty

8. Question: : (TCO D) On December 31, 2010, Irey Co. has $2,000,000 of short-term notes payable due on February 14, 2011. On January 10, 2011, Irey arranged a line of credit with County Bank which allows Irey to borrow up to...