Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 16

During the current year, Delta Products Corporation incurred the following expenditures which should be recorded either as operating expenses or as intangible assets:
a.xpenditures were made for the training of new employees.he average employee remains with the company for five years, but is trained for a new position every two years.
b.elta purchased a controlling interest in a wallpaper company.he expenditure resulted in recording a significant amount of goodwill.anagement expects to earn above-average returns on this investment indefinitely.
c.elta incurred large amounts of research and development costs in developing a superior product.he company expects that it will be patented and that sales of the resulting products will contribute to revenue for at least 40 years.he legal life of the patent, however, will be only 20 years.
d.elta made an expenditure to acquire the patent on a product identified as a "whatsa." The patent had a remaining legal life of 10 years, but Delta expects to produce and sell the product for only four more years.
e.elta spent a large amount to sponsor the televising of the World Series.anagement's intent was to make television viewers more aware of the company's name and product lines.
Instructions
Explain whether each of the above expenditures should be recorded as an operating expense or an intangible asset.f you view the expenditure as an intangible asset, indicate the number of years over which the asset should be amortized.xplain your reasoning.