Factors that should be considered in determining the useful life of an intangible asset include
A) Legal, regulatory, or contractual provisions.
B) The residual value of the asset.
C) The entity's expected use of the intangible asset.
D) The effects of obsolescence, competition, and technological change.
E) All of the above choices are used in determining the useful life of an intangible asset.

Question

Quizplus · Accepted Answer

All of the factors mentioned in options A, B, C, and D should be considered in determining the useful life of an intangible asset. Legal, regulatory, or contractual provisions can limit the useful life of an intangible asset. The residual value of an asset is the amount that could be obtained from disposing of the asset at the end of its useful life. The expected use of the intangible asset by the entity can affect its useful life. Finally, the effects of obsolescence, competition, and technological change can all contribute to the determination of the useful life of an intangible asset.

Factors That Should Be Considered in Determining the Useful Life