Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:ts) Which of the following factors should NOT be considered when determining the useful life of an
intangible asset? (
O Potential salvage value at different times
O Provisions for renewal
O Length of legal protection (ie legal life)
O Expected actions of competitors
4
Expert Solution
Step 1
Lets understand the basics.
Intangible asset is a asset which are not having any physical existance. Example of the intangible asset is goodwill, patents, trade mark, copyright etc.
Intangible asset needs to amortized over a useful life based on the some predetermine basis.
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