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• A)The copyright no longer represents a future benefit to the company.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:

Non-experimental Research

Observational research in which the researcher does not actively manipulate variables but observes natural occurrences.

Opinions, Beliefs, Behaviors

Individual or collective attitudes, convictions, and actions that reflect personal or group values, perspectives, and conduct.

Statistics

The science of collecting, analyzing, interpreting, and presenting data.

Data Collection

The process of gathering and measuring information on variables of interest in a systematic fashion.