Listed below are various methods of allocating the cost of certain capital assets over their useful lives, each followed by a descriptive statement. Match the methods to the statements by placing the appropriate letter in the space provided. METHODS
A. Capitalized and depreciated/amortized/depleted
B. Capitalized
C. Evaluated for impairment
D. Expensed
E. None of these methods $$\begin{array} { | l | l | }
\hline & \text { 1.Purchased patent } \
\hline & \text { 2.Basket purchase of two commercial buildings } \
\hline & \text { 3.Advertising costs } \
\hline & \text { 4.Intangible assets with indefinite live } \
\hline & \text { 5.Legal costs incurred to defend a copyright from infringement } \
\hline & \text { 6.Research costs incurred internally } \
\hline & \text { 7.Cost of timberland } \
\hline & \text { 8.Five-acre parcel of land where a firm's headquarters is located } \
\hline & \text { 9.Purchased drilling equipment } \
\hline & \text { 10.Goodwill acquired in a business combination } \
\hline & \text { 11.Interest on self-constructed assets } \
\hline & \text { 12.Development costs for a proven new product } \
\hline
\end{array}$$

Question

Listed below are various methods of allocating the cost of certain capital assets over their useful lives, each followed by a descriptive statement. Match the methods to the statements by placing the appropriate letter in the space provided. METHODS
A. Capitalized and depreciated/amortized/depleted
B. Capitalized
C. Evaluated for impairment
D. Expensed
E. None of these methods $$\begin{array} { | l | l | } 
\hline & \text { 1.Purchased patent } \
\hline & \text { 2.Basket purchase of two commercial buildings } \
\hline & \text { 3.Advertising costs } \
\hline & \text { 4.Intangible assets with indefinite live } \
\hline & \text { 5.Legal costs incurred to defend a copyright from infringement } \
\hline & \text { 6.Research costs incurred internally } \
\hline & \text { 7.Cost of timberland } \
\hline & \text { 8.Five-acre parcel of land where a firm's headquarters is located } \
\hline & \text { 9.Purchased drilling equipment } \
\hline & \text { 10.Goodwill acquired in a business combination } \
\hline & \text { 11.Interest on self-constructed assets } \
\hline & \text { 12.Development costs for a proven new product } \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Listed below are various methods of allocating the cost of certain capital assets over their useful lives, each followed by a descriptive statement. Match the methods to the statements by placing the appropriate letter in the space provided. METHODS
A. Capitalized and depreciated/amortized/depleted
B. Capitalized
C. Evaluated for impairment
D. Expensed
E. None of these methods $$\begin{array} { | l | l | } 
\hline & \text { 1.Purchased patent } \
\hline & \text { 2.Basket purchase of two commercial buildings } \
\hline & \text { 3.Advertising costs } \
\hline & \text { 4.Intangible assets with indefinite live } \
\hline & \text { 5.Legal costs incurred to defend a copyright from infringement } \
\hline & \text { 6.Research costs incurred internally } \
\hline & \text { 7.Cost of timberland } \
\hline & \text { 8.Five-acre parcel of land where a firm's headquarters is located } \
\hline & \text { 9.Purchased drilling equipment } \
\hline & \text { 10.Goodwill acquired in a business combination } \
\hline & \text { 11.Interest on self-constructed assets } \
\hline & \text { 12.Development costs for a proven new product } \
\hline
\end{array}$$

Listed Below Are Various Methods of Allocating the Cost of Certain