At the End of 2013, Mirror Productions Determined That One

question 43

Multiple Choice

At the end of 2013, Mirror Productions determined that one of its copyrights was worthless.The copyright had a cost of $320,000.The copyright had been amortized for 8 years of its estimated 25-year legal life.Which of the following statements is the justification for removing the remaining cost of the copyright from the accounting records?

• A)The copyright no longer represents a future benefit to the company.
• B)The federal government does not allow copyrights to be recorded as assets once they are deemed worthless.
• C)The cost of the copyright represents an obligation to return capital contributions to the stockholders.
• D)The cost of the copyright has usefulness that will impact the net income of future accounting periods.

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Definitions:

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