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Among the options given, goodwill is the intangible asset that is not amortized Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. Goodwill is tested for impairment instead of being gradually written off
In contrast, franchises, copyrights, and patents are all amortized over their useful lives. The vehicle hasa life of 8 years or 250,000 miles and an estimated salvage value of $5,000. Identify which intangible asset from the given list would not be subject to amortization by understanding that certain assets like goodwill have indefinite lifespans and are subject to impairment tests instead of amortization.
Option c, franchise, is amortized over the term of the franchise agreement
However, option d, goodwill, is not amortized but is instead tested for impairment annually Goodwill is the only item from the options provided that would not be amortized because it has an indefinite useful life In contrast, copyrights, franchise fees, and patents are all amortized over their respective useful lives. Different intangible assets have different accounting treatments
<br /> patents and copyrights are intangible assets that are subject to amortization over their useful lives <br /> goodwill, however, is not amortized. Study with quizlet and memorize flashcards containing terms like which of the following is not a tangible asset?, land is different from other tangible assets in that its utility is not diminished by its use. Goodwill generated internally should not be capitalized in the accounts because measuring the components of goodwill is simply too complex and associating any costs with future benefits is too difficult.
Which of the following intangible assets is not amortized
Purchased a delivery vehicle on january 1, 2012 for $46,000
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