The Carrying Value of an Intangible Is

question 69

Multiple Choice

The carrying value of an intangible is

• A) the fair value of the asset at a balance sheet date.
• B) the asset's acquisition cost less the total related amortization recorded to date.
• C) equal to the balance of the related accumulated amortization account.
• D) the assessed value of the asset for intangible tax purposes.

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for transactions involving similar assets or liabilities.

A Premium

An amount paid exceeding the nominal or face value of a security or insurance policy.

Effective Yield

Effective yield is an investment's annual rate of interest when compounding occurs more often than once a year.

Present Value Factors

A factor used to calculate the present value of a future amount, considering the time value of money and interest rates.