Acquired in-process research and development is considered as
A) a definite-lived asset subject to amortization.
B) a definite-lived asset subject to testing for impairment.
C) an indefinite-lived asset subject to amortization.
D) an indefinite-lived asset subject to testing for impairment.
E) a research and development expense at the date of acquisition.

Question

Quizplus · Accepted Answer

Acquired in-process research and development is an intangible asset that is typically indefinite-lived subject to testing for impairment annually. It is not subject to amortization as it is not considered to have a definite useful life.

Acquired In-Process Research and Development Is Considered as