Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Sign up and see all textbooks for free! Illustration

Chapter 12: Intangible Assets

Expert-verified
Intermediate Accounting (Kieso)
Pages: 610 - 657

Answers without the blur.

Just sign up for free and you're in.

Illustration

123 Questions for Chapter 12: Intangible Assets

  1. Hillsborough Co. has a held-to-maturity investment in the bonds of Schuyler Corp. with a carrying value of $70,000. Hillsborough determined that due to poor economic prospects for Schuyler, the bonds have decreased in value to $60,000. It is determined that this loss in value is uncollectible. Prepare the journal entry, if any, to record the reduction in value.

    Found on Page 610
  2. Indicate how unrealized holding gains and losses should be reported for debt investments classified as trading, available-for-sale, and held-to-maturity.

    Found on Page 610
  3. Stave Company invests $10,000,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now $10,600,000. Interest is paid on January 1. Prepare journal entries for Stave Company to (a) record the transactions related to these bonds in 2017, assuming Stave does not elect the fair option; and (b) record the transactions related to these bonds in 2017, assuming that Stave Company elects the fair value option to account for these bond.

    Found on Page 610
  4. Izzy Inc. purchased a patent for $350,000 which has an estimated useful life of 10 years. Its pattern of use or consumption cannot be reliably determined. Prepare the entry to record the amortization of the patent in its first year of use.

    Found on Page 637
  5. Explain the difference between artistic-related intangible assets and contract-related intangible assets.

    Found on Page 637
  6. Question: Treasure Land Corporation incurred the following costs in 2017

    Found on Page 638
  7. What is goodwill? What is a bargain purchase?

    Found on Page 637
  8. Question: Indicate whether the following items are capitalized or expensed in the current year. (a) Purchase cost of a patent from a competitor. (c) Organizational costs. (b) Research and development costs. (d) Costs incurred internally to create goodwill.

    Found on Page 638
  9. Under what circumstances is it appropriate to record goodwill in the accounts? How should goodwill, properly recorded on the books, be written off in order to conform with generally accepted accounting principles?

    Found on Page 637
  10. In examining financial statements, financial analysts often write off goodwill immediately. Comment on this procedure.

    Found on Page 637

Related Business-studies Textbooks with Solutions

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.