The accounting life of intangible assets is determined by:
A) only their legal lives.
B) only their useful lives.
C) their legal lives or useful lives, whichever is shorter.
D) the tax life mandated by the IRS.

Question

Quizplus · Accepted Answer

Intangible assets are amortized over either their legal lives or useful lives, whichever is shorter. This is in accordance with generally accepted accounting principles. The tax life mandated by the IRS may differ from the accounting life, but for accounting purposes, the shorter of the legal life or useful life is used to determine the amortization schedule.

The Accounting Life of Intangible Assets Is Determined By