T or F

1. If the fair value of an unlimited life intangible other than goodwill is less than its book
value, an impairment loss must be recognized.

2. If market value of an impaired asset recovers after an impairment has been recognized,
the impairment may be reversed in a subsequent period.

3. The same recoverability test that is used for impairments of property, plant, and
equipment is used for impairments of indefinite-life intangibles.

4. Periodic alterations to existing products are an example of research and development costs.

5. Research and development costs that result in patents may be capitalized to the extent
of the fair value of the patent.

6. Research and development costs are recorded as an intangible asset if it is felt they will
provide economic benefits in future years.

7. Contra accounts must be reported for intangible assets in a manner similar to accumu-
lated depreciation and property, plant, and equipment.