Chapter 9, Problem 9.17E

(a)

To determine

Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Intangible Assets: These are the long-term assets having no physical existence. However, the benefits provided by these assets are used by the company for a long period of time. Example: Patent, Trademark, Goodwill, Copyrights.

To explain: the reason for depreciating a building.

(b)

To determine

To explain: the reason for the building having zero book value but substantial fair value.

(c)

To determine

To state: some examples of intangibles found in college campus.

(d)

To determine

To give: some examples of company or product trademarks or trade names.

To determine

To explain: whether the trade names and trademarks reported on a company’s balance sheet.