Which of the following statements concerning intangibles is true?
A)A copyright should be considered an intangible with an indefinite life.
B)Organization costs must be expensed as incurred.
C)A patent should be amortized over the shorter of the inventor's life or its economic life.
D)The registration of a trademark or trade name lasts for 20 years and is nonrenewable.

Question

Quizplus · Accepted Answer

Organization costs, such as legal and incorporation fees, must be expensed as incurred according to accounting standards. A copyright can have a definite or indefinite life depending on the length of time it is protected by law. A patent should be amortized over its economic life, which is typically shorter than the inventor's life. The registration of a trademark or trade name lasts for 10 years and can be renewed indefinitely.

Which of the Following Statements Concerning Intangibles Is True