Intangible Assets May Be Internally Generated or Purchased from Another

Question

Examlex · Accepted Answer

The Answer is (a) The typical costs included in the purchase of an intangible asset are: purchase price, legal fees, and other incidental expenses.
(b) In a non-cash acquisition of an intangible asset, the initial cost of the intangible is either the fair value of the consideration given or the fair value of the intangible received, whichever is more clearly evident.
(c) When several intangible assets are acquired in a "basket purchase", the cost of the individual assets is based on their relative fair values. For example:

(a) The typical costs included in the purchase of an intangible asset are: purchase price, legal fees, and other incidental expenses. (b) In a non-cash acquisition of an intangible asset, the initial cost of the intangible is either the fair value of the consideration given or the fair value of the intangible received, whichever is more clearly evident. (c) When several intangible assets are acquired in a basket purchase , the cost of the individual assets is based on their relative fair values. For example:

Intangible Assets May Be Internally Generated or Purchased from Another

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