According to the most current FASB standards,intangible assets acquired in a basket purchase that does not represent the acquisition of an entire business should be
A) valued by allocating the total purchase price according to the relative fair values of all assets acquired,regardless of whether the assets are separately tradable or contract based.
B) valued by allocating the total purchase price according to the relative fair values only of intangible assets that are separately tradable or contract based.
C) valued by recording separately traded and contract based intangible assets at their individual fair values with any unallocated purchase price being recognized as goodwill.
D) valued by recording separately traded and contract based intangible assets at their individual fair values with any unallocated purchase price being expensed in the year of acquisition.

Question

Quizplus · Accepted Answer

Intangible assets acquired in a basket purchase should be valued by allocating the total purchase price according to the relative fair values of all assets acquired, regardless of whether the assets are separately tradable or contract-based, according to FASB standards. This ensures that the purchase price is distributed among the acquired assets in a manner that reflects their fair values.

According to the Most Current FASB Standards,intangible Assets Acquired in a Basket