Refer to Cisco’s balance sheet and Note 4 for information relating to purchased intangible assets.

i. What percentage of total assets consists of purchased intangible assets, net, at July 27, 2013? At July 28, 2012? What type of events triggered the existence of these intangible assets?

ii. Cisco’s purchased intangibles fall into one of two categories—those with finite lives and those with indefinite lives. Describe in your own words what these categories mean. How does the accounting for intangibles differ across these two types of intangible asset categories?

iii. What is the gross amount of recorded purchased intangible assets at July 27, 2013? What proportion of the purchased intangible assets at this date are finite-lived?

iv. Show the journal entry that Cisco made to record the amortization of purchased intangible assets for 2013. Ignore any income tax effects. Is any portion of the amortization in 2013 attributable to impairment of purchased intangibles?

 

Answer rating: 100% (QA)

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