Intangible assets with limited lives are usually amortized using the straight-line method with no residual value.

Question

Quizplus · Accepted Answer

The cost of intangible assets with a limited life is spread on a straight-line basis over each period of useful life in a process called amortization.Most companies do not estimate a residual value for their intangible assets because,unlike tangible assets that can be sold as scrap,intangibles usually have no value at the end of their useful lives.

Intangible Assets with Limited Lives Are Usually Amortized Using the Straight-Line