True / False Questions
1. Plant assets are assets held for sale.

2. Plant assets refer to intangible assets that are used in the operations of a business.

3. Plant assets are used in operations and have useful lives that extend over more than one accounting period.

4. Land held for future expansion is an intangible asset.

5. Depreciation is the process of allocating the cost of a plant asset to expense in the accounting periods benefiting from its use.

6. Salvage value is an estimate of an asset”s value at the end of its benefit period.

7. Inadequacy refers to the insufficient capacity of a company”s plant assets to meet the company”s growing productive demands.

8. Depreciation should be recorded on the date an asset is purchased.

9. Depreciation measures the actual decline in market value of an asset.

10. A plant asset”s useful life might not be the same as its productive life.

11. It is not necessary to report both the cost and the accumulated depreciation of plant assets in the financial statements.

12. Depreciation expense is calculated using estimates of an asset”s salvage value and useful life.

13. Accumulated depreciation represents funds set aside to buy new assets when the assets currently owned are replaced.

14. When an asset is purchased (or disposed of) at a time other than the beginning or the end of an accounting period, depreciation is recorded for part of a year so that the year of purchase or the year of disposal is charged with its share of the asset”s depreciation.

15. Revising an estimate of the useful life or salvage value of a plant asset is referred to as a change in accounting estimate, and is reflected in the past, current, and future financial statements.

16. The going concern assumption supports the reporting of plant assets at book value rather than market value.

17. Total depreciation expense over an asset”s useful life will be identical under all methods of depreciation.

18. Financial accounting and tax accounting require the same recordkeeping and there should be no difference in results between the two accounting system

19. Most companies use accelerated depreciation for tax purposes because it reduces taxable income due to higher depreciation expense in the early years of an asset”s life.

20. The book value of an asset when using double-declining-balance depreciation is always greater than the book value from using straight-line depreciation, except at the beginning and the end of the asset”s useful life, when it is the same.

21. The modified accelerated cost recovery system (MACRS) is a depreciation method used for tax reporting.

22. Decision makers and other users of financial statements are especially interested in evaluating a company”s ability to use its assets in generating sales.

23. Asset turnover is computed by dividing average total assets by cost of sales.

24. Capital intensive companies have a relatively large amount invested in assets to generate a given level of sales.

25. Coors reported net sales of $2,463 million and average total assets of $1,546 million. Its total asset turnover equals 1.59.

26. Anheiser-Busch reported average total assets of $10,965 million and net sales of $11,430 million. Its total asset turnover equals .96.

27. An asset”s cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use.

28. If a machine is damaged during unpacking, the repairs are added to its cost.

29. An expenditure must be normal, reasonable, and necessary in preparing an asset for its intended use to be charged to and reported as part of the cost of a plant asset.

30. The purchase of a property that included land, building, and improvements is called a lump-sum purchase.

31. When a company constructs a building, the cost of the building includes materials and labor, design fees, building permits, and insurance during construction.

32. Land is not subject to depreciation because it has an unlimited life. This means that items which increase the usefulness of the land such as parking lots are not depreciated.

33. The cost of fees for insuring the title and any accrued property taxes are included in the cost of land.

34. The most frequently used method of depreciation is the straight-line method.

35. Total asset cost plus depreciation expense equals book value.

36. The units-of-production method of depreciation charges a varying amount of expense for each period of an asset”s useful life depending on its usage.

37. An accelerated depreciation method yields smaller depreciation expense in the early years of an asset”s life and larger depreciation expense in later years.

38. The double-declining balance method is applied by (1) computing the asset”s straight-line depreciation rate, (2) doubling it, (3) subtracting salvage value from cost, and (4) multiplying the rate times the net value.

39. A company purchased a plant asset for $45,000. The asset has an estimated salvage value of $6,000, and an estimated useful life of 10 years. The annual depreciation expense using the straight-line method is $3,900 per year.

40. Revenue expenditures are additional costs of plant assets that materially increase the assets” life or productive capabilities.

41. Ordinary repairs are expenditures that keep assets in normal, good operating condition.

42. Extraordinary repairs are expenditures extending the asset”s useful life beyond its original estimate, and are capital expenditures because they benefit future periods.

43. Capital expenditures are also called balance sheet expenditures.
44. Betterments are a type of capital expenditure.

45. Treating capital expenditures of a small dollar amount as revenue expenditures is likely to mislead users of financial statements. FALSE

46. Plant assets can be disposed of by discarding, selling, or exchanging them.

47. The first step in accounting for an asset disposal is to calculate the gain or loss on disposal.

48. Accounting for the exchange of assets depends on whether the transaction has commercial substance; commercial substance implies that it alters the company”s future cash flows.

49. If an asset is sold above its book value, the selling company records a loss.

50. Gain or loss on the disposal of assets is determined by comparing the disposed asset”s book value to the market value of any assets received.

51. A loss on disposal of a plant asset can only occur if the cash proceeds received from the asset sale is less than the asset”s book value.

52. Natural resources are assets that include standing timber, mineral deposits, and oil and gas fields.

53. Amortization is the process of allocating the cost of natural resources to periods when they are consumed.

54. Natural resources are often called wasting assets because they are physically consumed when used.

55. Natural resources are reported on the balance sheet at cost plus accumulated depletion.

56. When the usefulness of plant assets used to extract natural resources is directly related to the depletion of a natural resource, their costs are depreciated using the units-of-production method of depreciation, as long as the assets will not be moved to and used at another site when extraction of the natural resources is complete.

57. An ore deposit costing $800,000 is expected to produce 1,600,000 tons of ore. A total of 70,000 tons are mined and sold in the current year. The depletion expense for the current year is $35,000.

58. The cost of an intangible asset must be systematically allocated to depreciation expense over its estimated useful life.

59. Intangible assets are certain nonphysical assets used in operations that confer on their owners long-term rights, privileges, or competitive advantage.

60. Goodwill is the amount by which a company”s value exceeds the value of its individual assets and liabilities.

61. The cost of an intangible is systematically allocated to expense over its estimated useful life through the process of depletion.

62. Since goodwill is an intangible, it is amortized each year using the straight-line method, the same as other intangibles are amortized.

63. A patent is an exclusive right granted to its owner to manufacture and sell a patented device or to use a process for 20 years.

64. A copyright gives its owner the exclusive right to publish and sell a musical, literary, or artistic work during the life of the creator plus 17 years.

65. The cost of developing, maintaining, or enhancing the value of a trademark is always added to the value of the asset when incurred.

 
Multiple Choice Questions

66. Plant assets are:
A. Tangible assets used in the operation of a business that have a useful life of more than one accounting period.
B. Current assets.
C. Held for sale.
D. Intangible assets used in the operations of a business that have a useful life of more than one accounting period.
E. Tangible assets used in the operation of business that have a useful life of less than one accounting period.

67. A main accounting issue for plant assets is:
A. Computing the cost of the plant assets.
B. Matching the costs of plant assets against revenues for the periods they benefit.
C. Accounting for repairs and improvements to plant assets.
D. The disposal of plant assets.
E. All of these.

68. Plant assets are:
A. Current assets.
B. Used in operations.
C. Natural resources.
D. Long-term investments.
E. Intangible.

69. The relevant factor(s) in computing depreciation include:
A. Cost.
B. Salvage value.
C. Useful life.
D. Depreciation method.
E. All of these.

70. Salvage value is:
A. Also called residual value.
B. Also called scrap value.
C. An estimate of the asset”s value at the end of its benefit period.
D. A factor relevant to determining depreciation.
E. All of these.

71. Depreciation:
A. Measures the decline in market value of an asset.
B. Measures physical deterioration of an asset.
C. Is the process of allocating to expense the cost of a plant asset.
D. Is an outflow of cash from the use of a plant asset.
E. Is applied to land.

72. The useful life of a plant asset is:
A. The length of time it is productively used in a company”s operations.
B. Never related to its physical life.
C. Its productive life, but not to exceed one year.
D. Determined by the FASB.
E. Determined by law.

73. Inadequacy refers to:
A. The insufficient capacity of a company”s plant assets to meet the company”s growing production demands.
B. An asset that is worn out.
C. An asset that is no longer useful in producing goods and services.
D. The condition where the salvage value is too small to replace the asset.
E. The condition where the asset”s salvage value is less than its cost.

74. Obsolescence:
A. Occurs when an asset is at the end of its useful life.
B. Refers to a plant asset that is no longer useful in producing goods and services.
C. Refers to the insufficient capacity of a company”s plant assets to meet the company”s productive demands.
D. Occurs when an asset”s salvage value is less than its replacement cost.
E. Does not affect plant assets.

75. Once the estimated depreciation expense for an asset is calculated:
A. It cannot be changed due to the historical cost principle.
B. It may be revised based on new information.
C. Any changes are accumulated and recognized when the asset is sold.
D. The estimate itself cannot be changed; however, new information should be disclosed in financial statement footnotes.
E. It cannot be changed due to the consistency principle.

76. A machine originally had an estimated useful life of 5 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years. At that point the remaining cost to be depreciated should be allocated over the remaining:
A. 2 years.
B. 5 years.
C. 7 years. (10 year revised life – 3 years depreciated = 7 remaining)
D. 8 years.
E. 10 years.

77. A change in an accounting estimate is:
A. Reflected in past financial statements.
B. Reflected in future financial statements and also requires modification of past statements.
C. A change in a calculated amount that is included in current and future years” financial statements as a result of new information or subsequent developments and from better insight or improved judgment.
D. Not allowed under current accounting rules.
E. Considered an error in the financial statements.

78. When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $23,000 and its estimated salvage value is $1,500. After 4 years of straight-line depreciation, the asset”s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
A. $ 5,375.00.
B. $ 2,687.50.
C. $ 5,543.75.
D. $10,750.00.
E. $ 2,856.25.

79. A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage value of $2,000, and had a five-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,200 and its total useful life was increased from 5 years to 6 years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:
A. $1,000.
B. $1,800.
C. $1,467.
D. $1,600.
E. $2,160.

80. Nelson Company purchased equipment on July 1 for $27,500 and decided to depreciate the equipment on the straight-line method over its useful life of five years. Assuming the equipment”s salvage value is $3,500, the amount of monthly depreciation expense Nelson should recognize is:
A. $2,400
B. $ 200
C. $4,800
D. $ 400
E. $ 450

81. Thomas Enterprises purchased a depreciable asset on October 1, 2008 at a cost of $100,000.
The asset is expected to have a salvage value of $15,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset”s book value on December 31, 2010 will be:
A. $27,540
B. $21,600
C. $32,400
D. $18,360
E. $90,000

82. Based on the information provided in question #81, Thomas Enterprises should recognize what amount of depreciation expense in 2012?
A. $4,440
B. $6,610
C. $1,524
D. $5,520
E. $2,000

83. Lomax Enterprises purchased a depreciable asset for $22,000 on March 1, 2008. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset”s salvage value is $2,000, what will be the amount of accumulated depreciation on this asset on December 31, 2011?
A. $5,000.00
B. $4,166.67
C. $16,666.68
D. $20,000.00
E. $19,166.67

84. Based on the information provided in question # 83, Lomax Enterprises should recognize depreciation expense in 2011 in the amount of:
A. $19,166.67
B. $5,000.00
C. $5,500.00
D. $20,000.00
E. $4,166.67

85. The following information is available on a depreciable asset owned by First Bank & Trust:

The asset”s book value is $70,000 on October 1, 2010. On that date, management determines that the asset”s salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last three months of 2010 would be:
A. $2,187.50
B. $1,718.75
C. $2,031.25
D. $2,321.43
E. $1,964.29
86. Many companies use an accelerated depreciation method because:
A. It is required by the tax code.
B. It is required by financial reporting rules.
C. It yields larger depreciation expense in the early years of an asset”s life.
D. It yields a higher income in the early years of the asset”s useful life.
E. The results are identical to straight-line depreciation.

87. The modified accelerated cost recovery system (MACRS):
A. Is included in the U.S. federal income tax rules for depreciating assets.
B. Is an out-dated system that is no longer used by companies.
C. Is required for financial reporting.
D. Is identical to units of production depreciation.
E. All of these.

88. The straight-line depreciation method and the double-declining-balance depreciation method:
A. Produce the same total depreciation over an asset”s useful life.
B. Produce the same depreciation expense each year.
C. Produce the same book value each year.
D. Are acceptable for tax purposes only.
E. Are the only acceptable methods of depreciation for financial reporting.
89. Total asset turnover is used to evaluate:
A. The efficiency of management”s use of assets to generate sales.
B. The necessity for asset replacement.
C. The number of times operating assets were sold during the year.
D. The cash flows used to acquire assets.
E. The relation between asset cost and book value.

90. A total asset turnover ratio of 3.5 indicates that:
A. For every $1 in sales, the firm acquired $3.50 in assets during the period.
B. For every $1 in assets, the firm produced $3.50 in net sales during the period.
C. For every $1 in assets, the firm earned gross profit of $3.50 during the period.
D. For every $1 in assets, the firm earned $3.50 in net income.
E. For every $1 in assets, the firm paid $3.50 in expenses during the period.

91. Total asset turnover is calculated by dividing:
A. Gross profit by average total assets.
B. Average total assets by gross profit.
C. Net sales by average total assets.
D. Average total assets by net sales.
E. Net assets by total assets.

92. A company had average total assets of $897,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company”s total asset turnover equals:
A. 0.82.
B. 0.90.
C. 1.09.
D. 1.11.

E. 1.26.

93. Dell had net sales of $35,404 million. Its average total assets for the period were $14,502 million. Dell”s total asset turnover equals:
A. 0.40.
B. 0.35.
C. 1.45.
D. 2.44.
E. 3.50.

94. Land improvements are:
A. Assets that increase the usefulness of land, and like land, are not depreciated.
B. Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation.
C. Included in the cost of the land account.
D. Expensed in the period incurred.
E. Also called basket purchases.

95. Plant assets include:
A. Land.
B. Land improvements.
C. Buildings.
D. Machinery and equipment.
E. All of these.

96. The cost of land can include:
A. Purchase price.
B. Assessments by local governments.
C. Costs of removing existing structures.
D. Fees for insuring the title.
E. All of these.

97. A company paid $150,000, plus a 6% commission and $4,000 in closing costs for a property. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. What should be the allocation of this property”s costs in the company”s accounting records?
A. Land $75,000; Land Improvements, $30,000; Building, $45,000.
B. Land $75,000; Land Improvements, $30,800; Building, $46,200.
C. Land $81,500; Land Improvements, $32,600; Building, $48,900.
D. Land $79,500; Land Improvements, $32,600; Building, $47,700.
E. Land $87,500; Land Improvements; $35,000; Building; $52,500.

98. A company purchased property for a building site. The costs associated with the property were:

What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
A. $175,800 to Land; $18,800 to Building.
B. $190,000 to Land; $3,800 to Building.
C. $190,800 to Land; $1,000 to Building.
D. $192,800 to Land; $0 to Building.
E. $193,800 to Land; $0 to Building.

99. A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $62,000; the land at $45,000, and the parking lot at $18,000. Land should be recorded in the accounting records with an allocated cost of:
A. $ 0.
B. $ 36,000.
C. $ 42,000.
D. $ 45,000.
E. $100,000.

100. The formula for computing annual straight-line depreciation is:
A. Depreciable cost divided by useful life in units.
B. Cost plus salvage value divided by the useful life in years.
C. Cost less salvage value divided by the useful life in years.
D. Cost multiplied by useful life in years.
E. Cost divided by useful life in units.

101. The total cost of an asset less its accumulated depreciation is called:
A. Historical cost.
B. Book value.
C. Present value.
D. Current (market) value.
E. Replacement cost.

102. A method that charges the same amount of expense to each period of the asset”s useful life is called:
A. Accelerated depreciation.
B. Declining-balance depreciation.
C. Straight-line depreciation.
D. Units-of-production depreciation.
E. Modified accelerated cost recovery system (MACRS) depreciation.

103. A method that allocates an equal portion of the total depreciable cost for a plant asset to each unit produced is called:
A. Accelerated depreciation.
B. Declining-balance depreciation.
C. Straight-line depreciation.
D. Units-of-production depreciation.
E. Modified accelerated cost recovery system (MACRS) depreciation.

104. A depreciation method in which a plant asset”s depreciation expense for a period is determined by applying a constant depreciation rate to the asset”s beginning-of-period book value is called:
A. Book value depreciation.
B. Declining-balance depreciation.
C. Straight-line depreciation.
D. Units-of-production depreciation.
E. Modified accelerated cost recovery system (MACRS) depreciation.

105. A depreciation method that produces larger depreciation expense during the early years of an asset”s life and smaller expense in the later years is a (an):
A. Accelerated depreciation method.
B. Book value depreciation method.
C. Straight-line depreciation method.
D. Units-of-production depreciation method.
E. Unrealized depreciation method.

106. A company purchased a delivery van for $23,000 with a salvage value of $3,000 on September 1, 2008. It has an estimated useful life of 5 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, 2008?
A. $1,000.
B. $1,333.
C. $1,533.
D. $4,000.
E. $4,600.

107. A company purchased a cash register on January 1 for $5,400. This register has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method?
A. $ 500.
B. $ 800.
C. $ 864.
D. $1,000.
E. $1,080.

108. A company purchased a rope braiding machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It is estimated that the machine could produce 750,000 units of climbing rope over its useful life. In the first year, 105,000 units were produced. In the second year, production increased to 109,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year?
A. $25,200.
B. $26,160.
C. $26,660.
D. $27,613.
E. $53,160.

109. Revenue expenditures:
A. Are additional costs of plant assets that do not materially increase the asset”s life or its productive capabilities.
B. Are known as balance sheet expenditures.
C. Extend the asset”s useful life.
D. Substantially benefit future periods.
E. Are debited to asset accounts.

110. Another name for a capital expenditure is:
A. Revenue expenditure.
B. Asset expenditure.
C. Long-term expenditure.
D. Contributed capital expenditure.
E. Balance sheet expenditure.

111. Extraordinary repairs:
A. Are revenue expenditures.
B. Extend an asset”s useful life beyond its original estimate.
C. Are credited to accumulated depreciation.
D. Are additional costs of plants assets that do not materially increase the asset”s life.
E. Are expensed as incurred.

112. Ordinary repairs:
A. Are expenditures to keep an asset in normal operating condition.
B. Are necessary if an asset is to perform to expectations over its useful life.
C. Are treated as expenses.
D. Include cleaning, lubricating, and normal adjusting.
E. All of these.

113. Betterments:
A. Are expenditures making a plant asset more efficient or productive.
B. Are also called improvements.
C. Do not always increase an asset”s life.
D. Are capital expenditures.
E. All of these.

114. An asset”s book value is $18,000 on June 30, 2008. The asset is being depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, 2009 for $15,000, the company should record:
A. A loss on sale of $1,500.
B. A gain on sale of $1,500.
C. Neither a gain nor a loss is recognized on this type of transaction.
D. A gain on sale of $3,000.
E. A loss on sale of $3,000.

115. An asset”s book value is $36,000 on January 1, 2008. The asset is being depreciated $500 per month using the straight-line method. Assuming the asset is sold on July 1, 2009 for $25,000, the company should record:
A. Neither a gain or loss is recognized on this type of transaction.
B. A gain on sale of $2,000.
C. A loss on sale of $1,000.
D. A gain on sale of $1,000.
E. A loss on sale of $2,000.

116. Information on a depreciable asset owned by Wilson Engineering is as follows:

If the asset is sold on July 1, 2012 for $20,000, the journal entry to record the sale will include:
A. A credit to cash for $20,000.
B. A debit to accumulated depreciation for $22,500.
C. A debit to loss on sale for $10,000.
D. A credit to loss on sale for $10,000.
E. A debit to gain on sale for $2,500.
117. Information on a depreciable asset is as follows:

If the asset is sold on January 1, 2011 for $13,000, the journal entry to record the sale will include:
A. A credit to gain on sale for $8,000.
B. A debit to loss on sale for $2,625.
C. A credit to accumulated depreciation for $59,375.
D. A debit to loss on sale for $3,042.
E. A credit to gain on sale for $4,979.

118. An asset can be disposed of by:
A. Discarding it.
B. Selling it.
C. Exchanging it for another asset.
D. Donating it to charity.
E. All of these.

119. A company sold a machine that originally cost $100,000 for $60,000 cash. The accumulated depreciation on the machine was $40,000. The company should recognize a:
A. $0 gain or loss.
B. $20,000 gain.
C. $20,000 loss.
D. $40,000 loss.
E. $60,000 gain.

120. A company discarded a display case originally purchased for $8,000. The accumulated depreciation was $7,200. The company should recognize a (an):
A. $0 gain or loss.
B. $800 loss.
C. $800 gain.
D. $8,000 loss.
E. $7,200 loss.

121. A company had a bulldozer destroyed by fire. The bulldozer originally cost $125,000 with accumulated depreciation of $60,000. The proceeds from the insurance company were $90,000. The company should recognize:
A. A loss of $25,000.
B. A gain of $25,000.
C. A loss of $65,000.
D. A gain of $65,000.
E. A gain of $90,000.

122. Natural resources:
A. Include standing timber, mineral deposits, and oil and gas fields.
B. Are also called wasting assets.
C. Are long-term assets.
D. Are depleted.
E. All of these.

123. Depletion:
A. Is the process of allocating the cost of natural resources to periods in which they are consumed.
B. Is also called depreciation.
C. Is also called amortization.
D. Is an unrealized expense reported in equity.
E. Is the process of allocating the cost of intangibles to periods in which they are used.

124. A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $250,000. The depletion expense per ton of ore is:
A. $0.75.
B. $0.625.
C. $0.875.
D. $6.00.
E. $8.00.

125. A company purchased a mineral deposit for $800,000. It expects this property to produce 1,200,000 tons of ore and to have a salvage value of $50,000. In the current year, the company mined and sold 90,000 tons of ore. Its depletion expense for the current period equals:
A. $ 15,000.
B. $ 60,000.
C. $150,000.
D. $ 56,250.

E. $139,500.

126. Intangible assets include:
A. Patents.
B. Copyrights.
C. Trademarks.
D. Goodwill.
E. All of these.

127. Amortization:
A. Is the systematic allocation of the cost of an intangible asset to expense over its estimated useful life.
B. Is the process of allocating to expense the cost of a plant asset to the accounting periods benefiting from its use.
C. Is the process of allocating the cost of natural resources to periods when they are consumed.
D. Is an accelerated form of expensing an asset”s cost.
E. Is also called depletion.

128. A patent:
A. Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years.
B. Gives its owner an exclusive right to manufacture and sell a patented item or to use a process for 20 years.
C. Gives its owner an exclusive right to manufacture and sell a device or to use a process for 50 years.
D. Is the amount by which the value of a company exceeds the fair market value of a company”s net assets if purchased separately.
E. Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 17 years.

129. A copyright:
A. Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years.
B. Gives its owner an exclusive right to manufacture and sell a patented item or to use a process for 20 years.
C. Gives its owner an exclusive right to manufacture and sell a device or to use a process for 50 years.
D. Is the amount by which the value of a company exceeds the fair market value of a company”s net assets if purchased separately.
E. Gives its owner the exclusive right to publish and sell a musical or literary work during the life