Purchase Solution

Amortized Intangible Assets

Not what you're looking for?

Ask Custom Question

Please help answer the problem regarding amortized intangible assets. Provide at least 200 words and include references in the solution.

Should intangible assets always be amortized over their legal lives? Explain. What are the basic issues related to accounting for intangible assets?

Purchase this Solution
Solution Summary

This solution explains if intangible assets should always be amortized over their useful lives. This solution also explains the basic issues related to accounting for intangible assets. The explanation is given in 262 words. Three references are included in the solution.

Solution Preview

Problem: Should intangible assets always be amortized over their legal lives? Explain. What are the basic issues related to accounting for intangible assets?

Solution:
Intangible assets are amortized according to their useful life, not their legal life. If we determine that an intangible asset has a useful life of ten years but after six years find that the useful life has been "used up," we would make an adjustment to the intangible asset due to the ...

Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • Intangible asset

    292799 Intangible asset What is an intangible asset? Should all intangible assets be subject to amortization? Why or why not? Why are some intangible assets not amortized? What is the implication to the financial statements?

  • Franchise Amortization

    How much should be amortized by the company for the year ended December 31, 2010? Intangible assets are classified as either having a definite life or an indefinite life.

  • 2 Financial Statement Accounting Problems

    The costs of these intangible assets when purchased can be measured and amortized or allocated to expense over their useful lives, but some intangible asset cannot. Why are some intangible assets not amortized?

  • P10-7B Whitley Company

    The posting has solution to question 10-7B relating to intangible assets of Whitley Company.

  • Intangible assets

    Limited life intangible assets are amortized into expense over the period benefitted. Unlimited life intangibles are subject to a yearly impairment test.

  • Correct Intangible Asset Account Including Adjusting Entries

    Indefinite-life intangible asset - formula 75,000 Intangible assets 75,000 To reclassify the cost of a secret formula. The amount is not amortized because it has an indefinite life. It has not been impaired in 2007.

  • Organizations Costs in Newatit Company

    Does the occurrence of organization costs meet the definition of assets? b. If organization costs are assets, would they be considered intangible assets? Explain. c. How should the cost incurred be matched against earnings under current GAAP?

  • Does elimination of the amortization of goodwill make sense

    Intangible assets that do not have indefinite lives [such as patents] will continue to be amortized.

  • Financial Statements: Intangible Asset Impairment

    126125 Financial Statements: Intangible Asset Impairment What are the quantitative measures that are used to determine the impairment of an asset? How would you apply these quantitative measures to intangible assets?

View More Related Solutions