Acc 553 Midterm Exam Solution All Possible Questions

ACC 553 Midterm Exam Solution All Possible Questions
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1. (TCO C) Under current accounting practice, intangible assets are classified as (Points: 5)
2. (TCO C) Which of the following intangible assets should not be amortized? (Points: 5)
3. (TCO C) The intangible asset goodwill may be (Points: 5)
4. (TCO C) ELO Corporation purchased a patent for $90,000 on September 1, 2008. It had a useful life of ten years. On January 1, 2010, ELO spent $22,000 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? (Points: 5)
5. (TCO C) During 2011, Bond Company purchased the net assets of May Corporation for $1,000,000. On the date of the transaction, May had $300,000 of liabilities. The fair value of May’s assets when acquired were as follows:
How should the $500,000 difference between the fair value of the net assets acquired ($1,500,000) and the cost ($1,000,000) be accounted for by Bond? (Points: 5)
6. (TCO D) Which of the following is a condition for accruing a liability for the cost of compensation for future absences? (Points: 5)
7. (TCO D) Which of the following taxes does not represent a payroll deduction a company may incur? (Points: 5)
8. (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 three years that has resulted in material but rather stable warranty repair and replacement costs. Any liability for the warranty (Points: 5)
9. (TCO D) Jenkins Corporation has $2,500,000 of short-term debt it expects to retire with proceeds from the sale of 75,000 shares of common stock. If the stock is sold for $20 per share...