1. What is an impairment of a fixed asset?
2. How is the sale of equipment at an amount greater than its book value recorded?
How would your answer change if the equipment is sold at an amount less than its book value?
3. Describe the benefits that intangible assets provide to an enterprise.
4. What factors should be considered when selecting the amortization period for an intangible asset?
5. What basis underlies the computation of depletion?