The cost of an intangible asset is comprised of the purchase price:
A)less legal costs incurred in the purchase.
B)plus indirectly attributable costs.
C)less directly attributable costs.
D)plus directly attributable costs.

Question

Quizplus · Accepted Answer

The cost of an intangible asset is the price paid to acquire the asset plus any directly attributable costs, such as legal fees, registration fees, etc. Indirect costs, such as overhead or general administrative expenses, should not be included in the cost of the asset. The legal costs incurred in the purchase would also be included in the cost of the asset, not deducted from it.

The Cost of an Intangible Asset Is Comprised of the Purchase