A Piece of Iron Rests on Top of a Piece

question 39

Multiple Choice

A piece of iron rests on top of a piece of wood floating in a bathtub.If the iron is removed from the wood,and kept out of the water,what happens to the water level in the tub?

• A)It goes up.
• B)It goes down.
• C)It does not change.
• D)It is impossible to determine from the information given.

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Definitions:

Unamortized Patent

The portion of a patent's cost that has not yet been expensed in the income statement over its useful life.

Amortization Expense

The systematic allocation of the cost of an intangible asset over its useful life.

Fair Value

The proceeds from liquidating an asset or the fees involved in transferring a liability during a regular transaction with engaged market members on the bookkeeping date.

Undervalued Patent

A patent that is recognized at a market value lower than its potential earning power or its replacement cost.