The Cost of an Internally Developed Unidentifiable Intangible Is Expensed

question 55

Multiple Choice

The cost of an internally developed unidentifiable intangible is expensed as incurred. Accordingly, which one of the following costs would be expensed in the year it was incurred?

• A) legal cost of obtaining a patent
• B) cost of improvements with a three-year life made to an asset that is being leased by the company for a five- year period
• C) costs of developing new software products with proven technological feasibility
• D) Costs of developing knowledge and skill levels for new management-level employees

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Definitions:

Suspect Classifications

Suspect classifications are categories or classes, such as race, religion, or national origin, that trigger strict scrutiny by courts when governments pass laws discriminating against them.

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A system or method used to organize or categorize items into groups based on shared characteristics or criteria.

Bill of Rights

The collective name for the first ten amendments to the United States Constitution, which outline and guarantee fundamental rights and protections to American citizens.

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