4. Which amortization method should be used for intangibles that are amortized?

a. a method based on the expected pattern of benefits to be produced by the asset

b. a method based on an annual review for impairment

c. the straight-line method; all others are inappropriate

d. any method is appropriate

7. Which of the following expenditures cannot be included in R&D costs?

a. indirect costs

b. intangibles purchased from others

c. personnel costs

d. contract services performed for others

9. During 2021, Rockon Company, Inc. incurred $240,000 in legal fees in defending a patent against an infringement with a carrying value of $2,500,000. Rockons lawyers were successful with the defense of the patent. The legal fees should be

a. expensed in 2021 and classified as ordinary expense

b. classified as an extraordinary item on the income statement for 2021

c. capitalized and amortized over the remaining legal life of the patent

d. capitalized and amortized over the remaining economic life or legal life of the patent,

whichever is shorter