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Indicate Whether Each of the Following Statements Is True or False

Question 85

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Indicate whether each of the following statements is true or false.

Premises:
Recording the amortization of a patent includes increasing Amortization Expense and decreasing the Patent account.
A trademark has an identifiable legal lifetime.
U.S.GAAP requires that research and development costs be capitalized as assets and then expensed over a reasonable period of time.
A patent is amortized over the longer of its legal or useful life.
The capitalized cost of a trademark includes the cost to develop the trademark and to defend it.
Responses:
True
False

Correct Answer:

Recording the amortization of a patent includes increasing Amortization Expense and decreasing the Patent account.
A trademark has an identifiable legal lifetime.
U.S.GAAP requires that research and development costs be capitalized as assets and then expensed over a reasonable period of time.
A patent is amortized over the longer of its legal or useful life.
The capitalized cost of a trademark includes the cost to develop the trademark and to defend it.
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