The cost of an intangible asset with an indefinite life should
A) be amortized over 20 years.
B) be amortized over the life of the creator plus 70 years.
C) not be amortized.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Intangible assets with indefinite lives are not amortized because they do not have a foreseeable limit to the period over which they are expected to provide economic benefits. Instead, they are tested for impairment annually.

The Cost of an Intangible Asset with an Indefinite Life