Answered: If a trademark is developed internally,…

If a trademark is developed internally, it cannot be recognized as an intangible asset on the statement of financial position. True or False

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2MC: Which of the following would not be considered an intangible asset? A. goodwill B. patent C....

See similar textbooks

Related questions

Q: Assume that you contribute $230 per month to a retirement plan for 20 years. Then you are able to…

A: The monthly payment for 20 years is $230 The monthly payment for the next 30 years is $460 The…

Q: A 3-year 10% annual coupon bond yields 5%. The dollar price for the face value of $1000 is…

A: Price of bond is $1,136.1624 Macaulay duration is 2.7525 YTM is 5% To Find: Modified duration New…

Q: Assume that the Inflation is predicted to have an average of 5% over the next 6 years. A company…

A: Time value of money The concept that specifies the value of money today is having more than the same…

Q: Wrong Answer

A: The cost of purchase is $1800 on October 23. It can be done using one of the two credit cards a)…

Q: The holder of a put currency option has the obligation to

A: Option The financial instruments that allow investors to make a profit from the speculations that…

Q: You have $20,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of…

A: The total amount to invest is $20,000 Stock X has an expected return of 11% Stock Y has an expected…

Q: Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.9%…

A: Nominal Risk free rate, Rf = Real risk-free rate + Expected Inflation = 2% + 4.9% = 6.9%

Q: Phoebe realizes that she has charged too much on her credit card and has racked up $4,900 in debt.…

A: Given The amount of debt is $4900 monthly payment is $250

Q: You want to buy a $15,000 car. The company offering a 3% interest rate for 60 months (5 years). What…

A: To calculate the monthly payment we will use the below formula Monthly payment = PV/[1-(1+r)-n]/r…

Q: The Brigaphenski Co. has just paid a cash dividend of $2 per share. Investors expected return is…

A: Current value of the stock is calculated using following equation Current value of stock =…

Q: 3. You are given the following information about a bond: (i) Par value is 1000. (ii) Redemption…

A: Bond Valuation is a technique in which all future expected cash flows are discounted to its present…

Q: HR Industries (HRI) has a beta of 1.6; LR Industries's (LRI) beta is 0.5. The risk-free rate is 6%,…

A: Required rate of return refers to the minimum return that is earned by an investor from the…

Q: Explain why ethics is an appropriate topic in the study of corporate finance

A: Ethics basically refer to moral values and principles that guide the decision making part when one…

Q: What is its cost of equity if there are no taxes or other imperfections? The firm has a…

A: We have to find the cost of equity of a firm, if there are no taxes or other imperfections.…

Q: United Residential is a real-estate developer considering a 40-unit apartment complex in a growing…

A: The monthly rental should be based on the total cost involved in that includes the land ,building…

Q: General Electric has just issued a callable (at par) 10-year, 6.4% coupon bond with annual coupon…

A: The issuer has the option to call callable bonds. The YTM is the return on a bond obtained if it is…

Q: Stock R has a beta of 2.5, Stock S has a beta of 0.65, the required return on an average stock is…

A: The Beta of Stock R is 2.5 The beta of stock S is 0.65 Average stock return is 14% Risk free rate is…

Q: Beware GREAT DEALS That Aren't INTERNET ARTICLE by Liz Pulliam Weston From MSN Money My old granny…

A: An article has been presented on financing modes and options. Several questions follow based on that…

Q: South Side Corporation is expected to pay the following dividends over the next four years: $ 0.74 ,…

A: The price of share will be calculated by Gorden's Model. As per Gorden's Model the share price will…

Q: XYZ has determined that market dynamics will result in some annual variations in the numbers they…

A: The customer lifetime value is to be computed by multiplying the average purchase value of the…

Q: What does the P/E ratio or EPS tell you about a companies’ overall financial condition?

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: A 1,000 bond with 6% semiannual coupons is redeemable at 1,050 in 20 years. The bond is selling for…

A: Bonds are is a debt instruments issued by a corporation or government to raise money. The bond…

Q: Jennifer is the owner of a video game and entertainment software retail store. She is currently…

A: Compounding Compounding is the method through which interest is added to the existing principal…

Q: 4. Shane obliged to pay her liability to St. Sebastian Multipurpose Cooperative amounting to…

A: Given: Loan amount (PV) = 875,000 Interest rate = 6.2% Years = 3 Compounded quarterly.

Q: You have $18,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of…

A: Expected Portfolio or the overall rate of return of Portfolio is the total return which is generated…

Q: Phoenix has carried on business for a number of years as a retailer of a wide variety of consumer…

A: Formulas for some ratios: Net profit margin=Net incomeRevenueOperating profit margin=Operating…

Q: You wish to buy a $21,500 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are…

A: Given Price of car is $21500 Term is 6 years rate is 7.2%

Q: 1. At the beginning of the year, P5, 000 was invested in a deposit account earning 8% annually. How…

Q: Due to the limitations of the weighted scoring model (weighting scheme), briefly discuss how Coady…

A: Weighted scheme has some limitations because weights are assigned on arbitrary basis and sometimes…

Q: Mark has a portfolio of bonds worth $30,000. They are all 6% bonds with a maturity in 15 years. New…

A: A company issues bonds in order to raise capital. Note that bonds are debt instruments and hence a…

Q: 3. A loan of $50,000 due in one year is to be repaid by three equal payments due today, six months…

A: A loan is one where the lender provides money to the borrower on interest. The lender received…

Q: The Omega Venture Group needs to borrow to finance a project Repayment of the loan involves payments…

A: We have to find the quantum of loan that will translate into a given monthly payment, after a…

Q: last year, i took out a loan with an interest rate of 4.24% when inflation was only 1.9%. now…

A: The real interest rate is the inflation adjusted interest rate which is reflecting the increase in…

Q: Create the spreadsheet models shown in below images and answer the following questions. a. What is…

A: Loan Amount $ 1,50,000.00 Interest Rate 8% Number of Years 30…

Q: is replacing its old packing line with a more efficient line. The old line was being depreciated on…

A: The cash flow are the after tax saving and after tax increase in value and also there will be…

Q: To help expand his business to new locations, the owner of LaRusso Autos has set aside $3,900 at the…

A: Effective annual rate When the interest rate is compounded other than annually, the effective rate…

Q: Tim has an opportunity to buy a $1,000 par value bond with a coupon rate of 7% and a maturity of 5…

A: Coupon rate The annual rate of return received by an investor who invests in bonds is known as the…

Q: family friend has approached you to help her determine which of the two common stocks she should…

A: Standard deviation is measure of how much return is different from mean and it is measure of risk of…

Q: While visiting one of my friends at a local bank, I overheard a high ranking bank executive tell one…

A: A statement has been made about a plain vanilla interest rate swap contract. We have to examine its…

Q: A farmer in Vancouver faces a dilemma. The weather forecast is for hot weather, and there is a 50%…

A: Sensitivity analysis refers to the model of finance that is being adopted by the company for…

Q: EE eBook Stock R has a beta of 2.5, Stock S has a beta of 0.75, the required return on an average…

A: The stock that has a higher beta is considered riskier because a little change in the overall market…

Q: You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 5.5% interest. a)…

A: Monthly payment (C) = $1400 Monthly interest rate (r) = 0.00458333333333333 (i.e. 0.055 / 12)…

Q: John is trying to decide if he should attend college or not. Part of his decision will be based on…

A: The estimated cost is based on provisions and the amount of attending the 4-year degree program and…

Q: Apocalyptica Corpoioration is expected to pay the following dividends over the next four years:…

A: Growth rate after year 4 (g) =0.05 Required return (r) = 0.11 Current share price = ? We will use…

Q: You bought one of Great White Shark Repellant Company's 8 percent coupon bonds one year ago for…

A: Real return The return received from an investment or project after deducting the inflation rate and…

Q: A beauty product company is developing a new fragrance named Happy Forever. There is a probability…

A: After-tax cash flow Cash from a business or individual after paying taxes, rent, wages, etc.…

Q: Why is working capital so important?

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: 2. Which of the following is NOT an example of the financial distress game? A) Cash in and Run B)…

A: Financial distress is conditions where firms feel problem in doing payments to suppliers and vendors…

Q: A stock's returns have the following distribution: Sharpe ratio: % Demand for the Company's Products…

A: Demand for the Company's Products Probability of this Demand Occurring (P) Rate of Return if this…

Q: Southern motors (seller) agreed to sell to Mr. Bean (Buyer) a specific dump truck for 1,500,000.00…

A: Summary of the case: Seller agreed to sell a specific dump truck for 1,500,000.00 to the buyer.…

Question

If a trademark is developed internally, it cannot be recognized as an intangible asset on the statement of financial position.

True or False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Which among the following is not an intangible asset? Copyright Patent Trademark Inventory
Which of the following cannot be protected as intellectual property? a. an idea b. an invention c. a trademark d. artistic expression
Which of the following would not be considered an intangible asset? A. goodwill B. patent C. copyright D. inventory
A company should record an asset called "Goodwill" when it purchases another company for an amount that exceeds the fair value of the other company's identifiable net assets. Select one: True False
Show how trademark ownership and free speech collide. How can these assertions be reconciled?
Which of the following is/are not capitalized as an intangible asset? Select one: a. Legal costs to defend a patent successfully and goodwill acquired when a company purchases another company. b. Costs of an internally developed patent and goodwill acquired when a company purchases another company. c. Costs of an internally developed patent and legal costs to defend a patent successfully. d. Goodwill acquired when a company purchases another company and costs to purchase a patent. e. Costs to purchase a patent and legal costs to defend a patent successfully.
Which of the following statements is true? Question 2 options: a The capitalizable costs of patents are legal fees and other registration costs. b An identifiable tangible asset developed internally is never recognized in the accounts as an asset. c Intangible assets usually have a residual value that must be considered in the amortization of cost. d An intangible asset is usually amortized by a credit to an income account.
Which of the following intangible assets would not be subject to amortization? Goodwill Patent Copyright All intangible assets are subject to amortization
Recovery of impairment is recognized under IFRS for all the following except: a. patent held for sale. b. patent held for use. c. trademark. d. goodwill.
Intangible assets do not include: Multiple Choice Patents. Copyrights. Trademarks. Goodwill. Land held as an investment.
The legal protection that provides a company exclusive rights to produce and sell a unique product is known as which of the following? A. trademark B. copyright C. patent D. goodwill
What are the differences among a patent, a copyright, and a trademark?