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Answer Key Chapter 22

This document contains sample problems related to accounting for intangible assets from Chapter 22. The problems cover true/false questions, multiple choice theory questions, and computational multiple choice questions on topics like amortization of intangible assets, research and development costs, and other costs associated with intangible assets.

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Jannelle Salac
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572 views2 pages

Answer Key Chapter 22

This document contains sample problems related to accounting for intangible assets from Chapter 22. The problems cover true/false questions, multiple choice theory questions, and computational multiple choice questions on topics like amortization of intangible assets, research and development costs, and other costs associated with intangible assets.

Uploaded by

Jannelle Salac
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 22

Intangible Assets

PROBLEM 1: TRUE OR FALSE


1. FALSE
2. FALSE
3. TRUE
4. TRUE
5. TRUE
6. TRUE
7. TRUE
8. FALSE
9. TRUE
10. TRUE

PROBLEM 5: MULTIPLE CHOICE - THEORY


1. C 6. D
2. C 7. D
3. D 8. C
4. A 9. B
5. D 10. A

PROBLEM 6: MULTIPLE CHOICE - COMPUTATIONAL


1. B (600,000 x 3/4) = 450,000. The default amortization method is
straight-line. An amortization method based on revenue is
prohibited.

2. C (500,000 ÷ 50) =10,000

3. C (90,000 x 7/10) = 63,000 carrying amount as of Jan. 1, 20x3


written-off in profit or loss in 20x3.

4. D
Solution:
Design of tools, jigs, molds, and dies involving new
technology 125,000
Modification of the formulation of a process 160,000
R&D Expense 285,000

1
5. B
Solution:
Depreciation 300,000
Salaries 700,000
Indirect costs appropriately allocated 200,000
Materials 180,000

R&D Expense 1,380,000

6. C
Solution:
Special equipment - no other use 60,000
Costs in producing prototype 200,000
Cost of testing the prototype 80,000

R&D Expense 340,000

7. D The costs of market research activities are expensed as selling costs


and not as R&D expense.

8. B
Solution:
Duplication of computer software and training
materials
from product masters (1,000 units) 25,000
Packaging product (500 units) 9,000
Total inventory 34,000

9. C
Other coding costs after establishment of technological
feasibility 24,000
Other testing costs after establishment of technological
feasibility 20,000
Costs of producing product masters for training
materials 15,000
Cost of software 59,000

10. A – the cost of trademarks

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