Which of the following is an example of an intangible with an indeﬁnite life?
A) A copyright on a book of poetry.
B) The goodwill value resulting from a business combination.
C) A patent on a new invention.
D) The research costs to develop a new drug.

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that arises when a business is acquired by another. It represents the excess of the purchase price over the fair value of the identifiable net assets of the acquired business. Unlike copyrights, patents, or research costs, goodwill is not amortized because it has an indefinite life; its value is assessed annually for impairment.

Which of the Following Is an Example of an Intangible