Points Received: | 25 / 25 (100%) | | Question Type: | # Of Questions: | # Correct: | Multiple Choice | 5 | 5 | | |

Grade Details - All Questions |

Question 1. | Question : | (TCO C) Intangible assets are reported on the balance sheet | | | Student Answer: | | with an accumulated depreciation account. | | | | in the property, plant, and equipment section. | | | | separately from other assets. | | | | None of the above | | Instructor Explanation: | Proper classification under U.S. GAAP. Chapter 12 | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 2. | Question : | (TCO C) Which of the following is often reported as an extraordinary item? | | | Student Answer: | | Amortization expense | | | | Impairment losses for intangible assets | | | | Research and development costs | | | | None of the above | | Instructor Explanation: | None of the items qualify as extraordinary items, which are rare. Amortization, impairment losses, and research and development are normal transactions in an operating business. Chapter 12 | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 3. | Question : | (TCO C) Jeff Corporation purchased a limited-life intangible asset for $120,000 on May 1, 2009. It has a useful life of 10 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2011? | | | Student Answer: | | $0 | | | | $24,000 | | | | $32,000 | | | | $36,000 | | Instructor Explanation: | ($120,000 / 10) X 2 2/3 = $32,000. Chapter 12 | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 4. | Question : | (TCO C) A company acquires a patent for a drug with a remaining legal and