In comparing companies with very different accounting practices, one way for an analyst to adjust for intangible items on the financial statements is to eliminate:

• A. Both Aand B
• B. All intangible assets from the balance sheets
• C. All amortization expense from the income statements
• D. Identifying the true economic value

Analysts should consider each of the following measure when estimating the remaining useful life of intangible asset EXCEPT:

• A. Remaining
  technological life
  (e.g., period until the
  current
  technology becomes obsolete, for patents, proprietary processes, etc.)
• B. Remaining legal (or legal protection) life (e.g., remaining term of trademark protection)
• C. Remaining copyrighted life (e.g., time period for which copyrights are sold)
• D. Remaining contractual life (e.g., remaining term on a lease)

The purpose of Erickson and Wang study was to empirically quantify the increase in selling price realized by sellers of entire companies in cases where:

• A. The entire analysis should be based on entire data
• B. The step-up in tax basis of the assets result in an increase in proceeds
• C. The buyer realizes a step-up in tax basis of the underlying assets when acquiring a "seasoned" S corporation
• D. Most acquirers do not want to purchase stock of another corporation because of the potential for liability assumptions

The analyst should be curious about the proprietary products and services, especially:

• A. The unique characteristics
  that generate a comparative
  advantage over their competition
• B. Intangible assets
• C. Favorable supplier contracts
• D. Benefits attributable to brand name, trademarks copyrights or patents