Canal Industries Has an Intangible Asset Is Being Amortized Over

question 89

Essay

Canal Industries has an intangible asset is being amortized over a ten-year time period.However,a competitor has just introduced a new product that will have a serious negative impact on the asset's value.Should the company continue to amortize the intangible asset over the ten-year life? Explain.

---

Definitions:

Organic Compound

A chemical compound containing carbon atoms covalently bonded to other elements, typically hydrogen, oxygen, and nitrogen, among others.

Hydrocarbon Alkyne

A type of hydrocarbon that contains at least one carbon-carbon triple bond, part of the alkyne class of organic compounds.

Carbon Atoms

The fundamental building blocks of organic molecules, known for forming a vast number of compounds due to their ability to form stable bonds with themselves and other elements.

Supramolecular Polymers

Large structures formed from the non-covalent joining of monomers, characterized by interactions such as hydrogen bonding or van der Waals forces.