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QUESTION 12 The following information is available for Outwest Airlines patents: Cost $1.290,000 Carrying value of patent 545,000 Expected future net cash flows 600.000 Fair value 480,000 How much impairment Loss would Outwest Airlines record, assuming the patent has a definite useful life? A. 565.000 B. 5810.000 C. 50 OD 5529.000 QUESTION 13 Eimer Corporation has $2.500.000 of short-term debt it expects to retire with proceeds from the sale of 50.000 shares of common stock. If the stock is sold for $30 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities? A. 50 B. 51.500.000 C. $2.500.000 D. 51000,000 QUESTION 14 QUESTION 14 When a company purchases land as a site for a plant interest costs capitalized during the period of construction are part of the A. period cost. B. cost of acquisition C. cost of the plant D.cost of the land. QUESTION 15 A principal objection to the straight-line method of depreciation is that it tends to result in a constant rate of return on a diminishing investment base. ignores variations in the rate of asset use. provides for the declining productivity of an aging asset gives smaller periodic write-offs than decreasing charge methods. QUESTION 16 The carrying amount of an intangible is A equal to the balance of the related accumulated amortization account. B. the fair value of the asset at a balance sheet date. C. the assessed value of the asset for intangible tax purposes. D. the asset's acquisition cost less the total related amortization recorded to date

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