1. Which of the following items will cause a company to report a lower amount of amortization expense of intangible assets in the first year after acquisition?

A. A higher amortization rate.
B. A lower residual value.
C. A longer useful life.


2. Stonebridge Inc. sells an intangible asset with a historical acquisition of £17 million and an accumulated depreciation of £3 million and reports a loss on the sale of £4.2 million. Which of the following amounts is most likely the sale price of the asset?

A. £9.8 million
B. £12.2 million
C. £18.2 million


3. If a company uses the fair value model to value investment property, changes in the fair value of the asset are least likely to impact:

A. net income.
B. net operating income.
C. other comprehensive income.


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