A company has the following expenditures during the year.
Advertising $ 100,000
Employee training 80,000
Customer outreach and consultation 50,000
The company believes that these efforts have increased the fair value of the entire company by $325,000. How much goodwill can the company recognize at the end of the year associated with these expenditures?
A) $0.
B) $80,000.
C) $230,000.
D) $325,000.
Answer: A
Which of the following subsequent expenditures would be capitalized?
A) Ordinary repairs and maintenance.
B) Additions.
C) Improvements.
D) Additions and improvements.
Answer: D
Which of the following subsequent expenditures would be capitalized?
A) Ordinary repair.
B) Costs that increase the service life of an asset.
C) Routine maintenance.
D) Ordinary repair and routine maintenance.
Answer: B
