Asked by Brynn Lauman on Jun 27, 2024
Verified
Which intangible assets are amortized over their useful life?
A) trademarks
B) goodwill
C) patents
D) all of these
Intangible Assets
Non-physical assets having a value with an indefinite life span, such as patents, trademarks, and goodwill.
Amortized
Amortized refers to the gradual reduction of a debt over a period of time through regular payments that cover both the loan interest and the principal amount.
- Identify and apply the appropriate treatment for intangible assets, including recognition and amortization.
Verified Answer
NS
Natasha SandersJul 03, 2024
Final Answer :
C
Explanation :
Patents are amortized over their useful life because they have a finite useful life, typically 20 years from the date of application. Trademarks and goodwill are not amortized because they have an indefinite useful life as long as they continue to be used in business.
Learning Objectives
- Identify and apply the appropriate treatment for intangible assets, including recognition and amortization.