Chapter 11

Intangible Assets

PROBLEM 11-1: TRUE OR FALSE

1. FALSE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
6. FALSE
7. TRUE
8. FALSE – indefinite, not amortized.
9. FALSE – credited to an “Accumulated Amortization” account
10. FALSE – zero, the asset is not impaired

PROBLEM 11-2: MULTIPLE CHOICE

1. D
2. D
3. B
4. A
5. A
6. A
7. D
8. A – (1M + 30K + 100K + 60K + 10K) = 1.2M
9. C - 1.2M ÷ 5 yrs. = 240,000 x 1/12 = 20,000
10. A
CA 12/31/x2: 1.2M – (20K + 240K) = 940,000
RA (VIU - higher): 800,000
Impairment loss = 940,000 – 800,000 = 140,000
PROBLEM 11-3: FOR CLASSROOM DISCUSSION
1. D
2. D
3. D
4. A
5. A
6. D
7. C
8. D
9. D – choice (a), indefinite, not infinite
10. A