ACCT 551 DeVry Midterm Exam Downloading is very simple, you can download this Course here: http://mindsblow.us/question_des/ACCT551DeVryMidtermExam/4268 Or Contact us at: email@example.com ACCT 551 DeVry Midterm Exam ACCT551 ACCT 551 DeVry Midterm Exam 1. (TCO C) Under current accounting practice, intangible assets are classified as 2. (TCO C) Which of the following intangible assets should not be amortized? 3. (TCO C) The intangible asset goodwill may be 4. (TCO C) ELO Corporation purchased a patent for $90,000 on September 1, 2008. It had a useful life of ten years. On January 1, 2010, ELO spent $22,000 to successfully defend the patent in a lawsuit. ELO feels that as of that date, the remaining useful life is five years. What amount should be reported for patent amortization expense for 2010? 5. (TCO C) During 2011, Bond Company purchased the net assets of May Corporation for $1,000,000. On the date of the transaction, May had $300,000 of liabilities. The fair value of May's assets when acquired were as follows: 6. (TCO D) Which of the following is a condition for accruing a liability for the cost of compensation for future absences? 7. (TCO D) Under what conditions is an employer required to accrue a liability for sick pay? 8. (TCO D) Information available prior to the issuance of the financial statements indicates that it is probable that, at the date of the financial statements, a liability has been incurred for obligations related to product warranties. The amount of the loss involved can be reasonably estimated. Based on the above facts, an estimated loss contingency should be 9. (TCO D) Stine Co. is a retail store operating in a state with a 6% retail sales tax. The retailer may keep 2% of the sales tax collected. Stine Co. records the sales tax in the Sales account. The amount recorded in the Sales account during May was $148,400. The amount of sales taxes (to the nearest dollar) for May is 10. (TCO D) Vargas Company has 35 employees who work eight-hour days and are paid hourly. On January 1, 2009, the company began a program of granting its employees ten days of paid vacation each year. Vacation days earned in 2009 may first be taken on January 1, 2010. Information relative to these employees is as follows: Vargas has chosen to accrue the liability for compensated absences at the current rates of pay in effect when the compensated time is earned. What is the amount of the accrued liability for compensated absences that should be reported at December 31, 2011?