Intangible Assets with an Indefinite Useful Life (Goodwill and Most

question 97

True/False

Intangible assets with an indefinite useful life (goodwill and most trademarks)are not amortized.

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Definitions:

IRC Section 179

Allows taxpayers to deduct the cost of certain property as an expense when the property is placed in service (rephrased definition for §179 Expense).

Depreciated

The reduction in the recorded cost of an asset in accounting, reflecting wear and tear, age, or obsolescence.

Ordinary Expense

An expense that is common, accepted, necessary, and appropriate for a business or individual's trade or profession under tax law.

Advertising

The activity or profession of producing advertisements for commercial products or services to increase sales or public awareness.