At the End of 2017,Mirror Productions Determined That One of Its

question 39

Multiple Choice

At the end of 2017,Mirror Productions determined that one of its copyrights was worthless.The copyright had a cost of $320,000.The copyright had been amortized for eight 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• A)The copyright no longer represents a future benefit to the company.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:

Management

The act of coordinating and overseeing the activities of a business or organization to achieve defined objectives.

Board Of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Employees

Individuals who are hired by a company to perform specific duties and tasks in exchange for compensation, contributing to the company's operations and goals.

Common Stockholders

Individuals or entities that own shares in a company's common stock, granting them voting rights and a share in the company's profits through dividends.