Question 8

Which intangible assets are amortized?

Question 8 options:

	d
	c
	b
	a

Question 9

Which characteristic is not possessed by intangible assets?

Question 9 options:

	Expensed over current and/or future years.
	Result in future benefits.
	Long-lived.
	Physical existence.

Question 10

Fruity Tooty Company offers its customers a pottery cereal bowl if they send in 4 boxtops from Fruity Tooty boxes and $1. The company estimates that 60% of the boxtops will be redeemed. In 20X1, the company sold 500,000 boxes of Fruity Tooty and customers redeemed 220,000 boxtops receiving 55,000 bowls. If the bowls cost Fruity Tooty Company $3 each, how much liability for outstanding premiums should be recorded at the end of 20X1?

Question 10 options:

	$84,000
	$40,000
	$150,000
	$60,000

Question 11

On February 1, 20X1, Jamison Corporation purchased a parcel of land as a factory site for $280,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 20X1. Costs incurred during this period are listed below: Jamison should record the cost of the land and new building, respectively, as

Question 11 options:

	$305,000 and $1,365,000.
	$295,000 and $1,375,000.
	$290,000 and $1,380,000.
	$290,000 and $1,375,000.

Question 12

Inkwell Co. incurred research and development costs in 2015 as follows: The amount of research and development costs charged to Inkwell's 2015 income statement should be

Question 12 options:

	$1,700,000.
	$2,425,000.
	$2,000,000.
	$4,700,000.