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Question : Pear Corp. bought a patent from another has a remaining

Pear Corp. bought a patent from another has a remaining legal life of 17 years. Pear belie company for $34.000. The patnet technological progress in the it is only likely to give the company an advantage for 10 years. The amount of annual amortization Pear should record is: Zero $2,000 $3,400 $34,000 Which of following is correct regarding the rules for deciding if the 29, goodwill is impaired? Every company must compute a quantitative amount of goodwill impairment every year for every element of goodwill The test of goodwill impairment is based only on the book value of the assets and liabilities of each reporting unit, without considering the fair value of the assets and liabilities As long as the fair value of each reporting unit is greater than its book value, there is no goodwill impairment The company does not have to record impairments of goodwill on reporting units where the value has decreased, as long as the fair value of the goodwill of other reporting units has increased enough to offset this decrease. Acme Factory bought a machine in Year 1 for a cost of $50,000 The estimated salvage value was $10,000 and the estimated life was 10 years. A the start of Year 5, the company changes its estimate of the salvage value to $0. The depreciation Acme should record for this machine in year 5 is $4.000 $5,000 $5,667 $6,600

 

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