Question 36 (

Intangible assets that have an indefinite useful life:

1)	Are those with no foreseeable limit on the period of time over which the asset is expected to contribute to the cash flows of the entity.

2)	Are those with no legal, contractual, or economic factors that are expected to limit their useful life to a company.

3)	Are those whose acquisition costs is not amortized over their useful life.

4)	All of these answer choices are correct.

Question 37

In January 2018, Vega Corporation purchased a patent at a cost of $200,000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January 2021, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss) in 2021 related to the patent should be:

Question 37 options:

1)

$40,000.

2)

$65,000.

3)

$215,000.

4)

$25,000.