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.

---

Definitions:

Indirect Exporting

A method of entering foreign markets by selling products to intermediaries, who in turn sell them to customers in the target market, rather than direct exporting.

Harley-Davidson

An iconic American motorcycle manufacturer known for its heavyweight motorcycles and distinctive brand culture.

Foreign Assembly

The practice of assembling products in a country different from where the components were manufactured, often to save labor costs or avoid import tariffs.

Licensing

involves granting a legally protected right under a trademark, patent, or copyright to use, manufacture, or sell a product.