Indicate whether each of the following statements is true or false.a)A patent with a useful life of 5 years and a legal life of 10 years is amortized over 5 years.b)Intangible assets with indefinite useful lives must be tested each year for impairment.c)If it is determined that the original value recorded for goodwill is too high, then the income statement account, impairment loss, will be increased.d)To recognize an impairment loss on goodwill, Amortization Expense will be increased, and the Goodwill account will be decreased.e)The recognition of an impairment loss involves a cash outflow classified as a financing activity.

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b)True c)True d)False e)Fa)This is true. Intangible assets, such as patents, with identifiable lives are amortized over the shorter of their legal or useful lives.b)This is true. If an intangible asset does not have an identifiable useful life, such as a trademark or goodwill, it is not amortized, but it is tested for impairment each year.c)This is true. The income statement account Impairment Loss is increased if it is determined that the original value recorded for goodwill is too high.d)This is false. The Impairment Loss account is increased, not Amortization Expense.e)This is false. An impairment loss does not affect cash flows.

Indicate Whether Each of the Following Statements Is True or False.a)A