Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Textbook Question
Chapter 3, Problem 8P
If no legal, regulatory, contractual, competitive, economic, or other factors limit the life of an intangible asset, the asset’s assigned value is allocated to expense over which of the following?
a. 20 years.
b. 20 years with an annual impairment review.
c. Infinitely.
d. Indefinitely (no amortization) with an annual impairment review until its life becomes finite.
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If no legal, regulatory, contractual, cempetative, economic, or other factors limit the life of an intangible asset's assigned value is allocated to expense over which of the following?
A. Equally over 20 years.
B. Equally over 40 years.
C. Equally over 20 years with an annual impairment review.
D. No amortization, but annually reviewed for impairment and adjusted accordingly.
E. No amortization over an indefinite period of time.
An intangible asset with a finite useful life should be amortised over:
O a. A period at the discretion of management.
O b. Its expected useful life.
OC Five years.
O d. No foreseeable limit.
An intangible asset with a finite useful life should be amortized over:
- a period determined by management
-it is not amortized, but checked for impairment annually
-not amortized at all
- it is expected useful lifetime
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