1) Goodwill is: A) Amortized over the greater of its estimated life or 40 years.
ID: 2429158 • Letter: 1
Question
1) Goodwill is: A) Amortized over the greater of its estimated life or 40 years. B) Only recorded by the seller of a business. C) The excess of the fair value of a business over the fair value of all net identifiable assets. D) None of these answer choices are correct. 2) Productive assets that are physically consumed in operations are: A) Equipment. B) Land C) Land improvements. D) Natural resources. 3) The exclusive right to benefit from a creative work, such as a film, is a: A) Patent. B) Copyright. C) Trademark. D) Franchise. 4) The cost of constructing a new parking lot at the company's office building would be recorded as: A) Land. B) Land improvement C) Building. D) Equipment 5) Vijay Inc. purchased a three-acre tract of land for a building site for $320,000. On the land was a building with an appraised value of $120,000. The company demolished the old building at a cost of S12,000, but was able to sell scrap from the building for $1,500. The cost of title insurance was $900 and attorney fees for reviewing the contract were $500. Property taxes paid were $3,000, of which $250 covered the period subsequent to the purchase date. The capitalized cost of the land is: A) S336,400. B) $336, I 50. C) $334,650. D) S201,150.Explanation / Answer
1)correct option is "C" -
Goodwill is the amount in excess of fair value of business (market value) in excess of fair value of net identifiable asset.
2)correct option is " D"
Natural resources are those asset that are physically consumed or exploited during the operations of business .All other asset are not consumed rather there value is decreased
3)correct option is " B"copyright
copyright is an intangible asset that is acquired to protect your creative work
4)correct option is ""B"
Cost of constructing a parking space is an example of land improvement .
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