Using the acquisition method, a company acquires all of the shares of stock of another company. in-process research and development is present and estimated to have a $300,000 fair value. how would you account for these costs?
a) always expense these costs at the acquisition date
b) expense these costs unless such costs represent assets with alternative future use
c) recognize these costs as an intangible asset and amortize the cost over a reasonable life
d) recognize these costs as an intangible asset and test for impairment
e) these costs have no impact on the purchase.

7. problems and applications q7 congress and the president decide that the united states should reduce air pollution by reducing its use of gasoline. they impose a $0.50 tax on each gallon of gasoline sold. suppose they decided to impose the tax on consumers. in the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on consumers by shifting the demand or supply curve. demand supply 0 1 2 3 4 5 6 3.0 2.5 2.0 1.5 1.0 0.5 0 price of gasoline (dollars per gallon) quantity of gasoline (thousands of gallons) demand s 1 s 2 true or false: the price producers receive will be higher if the tax were imposed on consumers. true false if the demand for gasoline were more elastic, this tax would be effective in reducing the quantity of gasoline consumed. true or false: consumers of gasoline are by this tax. true false workers in the oil industry are by this tax.