Assume That Stanton Had Other Intangible Assets with Indefinite Lives

question 3

Essay

Assume that Stanton had other Intangible assets with indefinite lives on its books at the date of acquisition. How would the impairment test differ from that which would apply to its amortizable assets, if at all? A simple explanation is required. Please do not use any numbers to support your answer.

---

Definitions:

Limited Partners

Investors in a limited partnership who are only liable for the business's debts and obligations up to the amount of their investment.

Limited Partnership

A form of partnership featuring both general partners, with unlimited liability, and limited partners, with liability limited to their investment.

Tax-Paying Entity

An individual or organization required by law to pay taxes to a governmental authority.

Federal Income Tax

An annual financial burden placed by the U.S. federal government on the income of different entities including individuals, corporations, and trusts.