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(Solved) (Latest ver. Aug 2020) - Intangible asset and depletion

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Choose the correct answer and explain in one sentence why:

1. The intangible asset "goodwill:"

a. represents the management team's assessment of its value to the company.
b. may arise when one company purchases another company.
c. arises because the market value of a company's assets is greater than cost.
d. all of the above are correct.

2. The principal challenge to calculating depletion is estimating:

a. the demand for the product.
b. the quantity of material to be recovered.
c. the cost of the asset.
d. the salvage value of the exploration equipment.


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