An intangible asset should
A)not be amortized if it has an finite life.
B)not be amortized if it has an indefinite life.
C)be amortized over its legal or useful life, whichever is longer.
D)be amortized over 5 years or less.

Question

Quizplus · Accepted Answer

Intangible assets with an indefinite life should not be amortized. Instead, they are tested annually for impairment. Amortization applies to intangible assets with a finite useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

An Intangible Asset Should