PARTE MULTIPLE CHOICE OR TAF QUESTIONS (30 POINTS). angible asset if there is no is expected to be used for 1. What is the proper time period over which to amortize an intangible asset forseeable limit on the period of time over which the intangible asset is expecte operations? a 40 years b 50 years immediately d. Not amortized 2. Plaza Corporation was established in 2017. In 2018 it started conducting market res behalf of its manufacturing clients. Prior to its operations, the following costs were Attorney fees in connection with Pizza business $4,000.00 Improvement to leased Office prior to occupancy 7,000.00 Meeting of incorporators, state filing fees, and other company expenses 5.000.00 he market research on wing costs were incurred: $16,000.00 What is the amount of expenses to be recognized in Plaza's Income Statement in 2018 a. $16,000 b. $9,000 c. $7,000 d. $4,000. D no- 3. A patent has a remaining legal life of 15 years. It should be: a. Expensed in the year of its acquisition b. Be amortized over 15 years regardless of its useful life c Be amortized over its useful life If les than 15 years d. Not be amortized. 4. Goodwill represents the excess of the purchase price of an acquired company over the a. Sum of the values assigned to tangible assets acquired minus liabilities assumed b. Sum of the fair values assigned to identifiable assets acquired minus liabilities assumed Sum of the fir values assigned to assumed Intangible assets acquired minus liabilities assumed d. Book value of the acquired company 5. T/F. All costs associated with the purchase of a franchise are capitalized as Intangible assets. 6. T/F. At the end of each accounting period, a company should evaluate its Investments in held-t- to-maturity, available for sale and trading securities for signs of impairment. 7. T/F. Investment in securities like bonds are sold at a discount when the market rate of interest is greater than the bonds' coupon rate. PARTE MULTIPLE CHOICE OR TAF QUESTIONS (30 POINTS). angible asset if there is no is expected to be used for 1. What is the proper time period over which to amortize an intangible asset forseeable limit on the period of time over which the intangible asset is expecte operations? a 40 years b 50 years immediately d. Not amortized 2. Plaza Corporation was established in 2017. In 2018 it started conducting market res behalf of its manufacturing clients. Prior to its operations, the following costs were Attorney fees in connection with Pizza business $4,000.00 Improvement to leased Office prior to occupancy 7,000.00 Meeting of incorporators, state filing fees, and other company expenses 5.000.00 he market research on wing costs were incurred: $16,000.00 What is the amount of expenses to be recognized in Plaza's Income Statement in 2018 a. $16,000 b. $9,000 c. $7,000 d. $4,000. D no- 3. A patent has a remaining legal life of 15 years. It should be: a. Expensed in the year of its acquisition b. Be amortized over 15 years regardless of its useful life c Be amortized over its useful life If les than 15 years d. Not be amortized. 4. Goodwill represents the excess of the purchase price of an acquired company over the a. Sum of the values assigned to tangible assets acquired minus liabilities assumed b. Sum of the fair values assigned to identifiable assets acquired minus liabilities assumed Sum of the fir values assigned to assumed Intangible assets acquired minus liabilities assumed d. Book value of the acquired company 5. T/F. All costs associated with the purchase of a franchise are capitalized as Intangible assets. 6. T/F. At the end of each accounting period, a company should evaluate its Investments in held-t- to-maturity, available for sale and trading securities for signs of impairment. 7. T/F. Investment in securities like bonds are sold at a discount when the market rate of interest is greater than the bonds' coupon rate