Limited-life intangibles are amortized by systematic charges to expense over their useful life.

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Limited-life intangibles, such as patents and copyrights, are amortized over their useful life, meaning that their cost is systematically charged to expense over the period in which they provide economic benefit. This is in contrast to indefinite-life intangibles, such as trademarks and goodwill, which are not amortized but are subject to impairment testing.

Limited-Life Intangibles Are Amortized by Systematic Charges to Expense Over