Under GAAP, an asset that would typically be recorded at historical cost, without amortization, but less any necessary adjustment for impairment, would be
A) Goodwill
B) Buildings
C) Intangible assets with definite lives
D) Marketable equity securities

Question

Quizplus · Accepted Answer

Goodwill is recorded at its historical cost and is not amortized under GAAP. Instead, it is tested annually for impairment, and if impaired, it is written down. Buildings (B) are depreciated, not amortized, and can also be subject to impairment. Intangible assets with definite lives (C) are amortized over their useful lives. Marketable equity securities (D) are recorded at fair value with changes recognized in earnings or other comprehensive income, depending on the classification.

Under GAAP, an Asset That Would Typically Be Recorded at Historical