Answered: Intangible assets are amortized when:…

Intangible assets are amortized when: There is no more depreciation available to take. It has a finite life. It has an infinite life. The value has been impaired.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Intangible assets are amortized when:

There is no more depreciation available to take.
It has a finite life.
It has an infinite life.
The value has been impaired.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

Step 1

Companies use assets to operate their businesses. These assets include such things as fixed assets, current assets, and intangible assets. The company should record the assets as per the accounting principles and accounting standards.

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