10.How should management choose an acceptable cost allocation method for accounting purposes? 11.Identify the steps necessary in recording the retirement of the long-lived asset. 12.Intangible...

10.How should management choose an acceptable cost allocation method for accounting purposes?

11.Identify the steps necessary in recording the retirement of the long-lived asset.

12.Intangible assets can be divided into two broad categories; those with definite lives, and those with indefinite lives. Assets with indefinite lives are not subject to amortization while those with definite lives are. Explain why this is the case and give at least one example of an intangible asset with a definite life and one example of an intangible asset with an indefinite live.

13.How do long-lived assets differ from inventory?

14.The Dayton Symphony recently acquired cellist from the Cincinnati Symphony in exchange for violinist. These artists’ contracts are capitalized and reported as assets by the symphonies. What complications arise in determining the cost of each artist’s contract for accounting purposes?