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

Question

Quizplus · Accepted Answer

The cost of an intangible asset includes directly attributable costs such as legal fees, registration fees, and professional fees necessary to acquire the asset. Therefore, choice C is correct. Indirect costs are not included in the cost of an intangible asset, so choice A is incorrect. Directly attributable costs should not be subtracted from the consideration, so choice B is incorrect. Legal costs incurred in the purchase are directly attributable costs, so choice D is incorrect.

The Cost of an Intangible Asset Is Comprised of the Fair