Task: Choose the correct answer and explain in one sentence why:
Question 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.
Question 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.