Intangible Assets May Be Internally Generated or Purchased from Another

question 3

Essay

Intangible assets may be internally generated or purchased from another party. In either case, what costs should be included in the initial valuation of the asset is an issue.

Instructions

(a) Identify the typical costs included in the cash purchase of an intangible asset.
(b) Discuss how to determine the cost of an intangible asset acquired in a non-cash transaction.
(c) Describe how to determine the cost of several intangible assets acquired in a "basket purchase." Provide a numerical example involving intangibles being acquired for a total price of $90,000.

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Definitions:

Hypnotically Induced

Brought about by a state of hypnosis, where an individual's awareness or consciousness is altered by suggestion.

Ice Bath

Immersion in ice-cold water, often used for therapeutic recovery or to reduce muscle inflammation and soreness.

Waking Levels

Different states of consciousness and alertness during wakefulness, ranging from drowsy to fully alert.

Psychic Safety Valve

A concept in psychology suggesting that expressing or discharging hidden emotions or desires serves as a mechanism for reducing stress or psychological tension.