The Cost of an Intangible Asset with an Indefinite Life

question 290

Multiple Choice

The cost of an intangible asset with an indefinite life should

• A) be amortized over 20 years.
• B) be amortized over the life of the creator plus 70 years.
• C) not be amortized.
• D) None of these answer choices are correct.

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Definitions:

Shock Absorber

A mechanical device designed to absorb and dampen shock impulses in vehicles and machinery, contributing to smoother movement.

CNS

The central nervous system, consisting of the brain and spinal cord, which processes and sends out nerve signals.

Somatic Nervous System

A section of the peripheral nervous system responsible for managing the intentional movement of the body by regulating skeletal muscles.

Eyeblink

A rapid closing and opening of the eyelid, which serves as a protective reflex to remove irritants from the surface of the eye or shield it from bright lights or approaching objects.