The carrying value of an intangible is
A) the fair value of the asset at a balance sheet date.
B) the asset's acquisition cost less the total related amortization recorded to date.
C) equal to the balance of the related accumulated amortization account.
D) the assessed value of the asset for intangible tax purposes.

Question

Quizplus · Accepted Answer

The carrying value of an intangible asset is the asset's acquisition cost less the total related amortization recorded to date. This gives the net value of the asset on the balance sheet at a particular point in time. The fair value of the asset may be different, and the accumulated amortization account simply shows how much of the asset's value has been used up over time. The assessed value of the asset for tax purposes may also be different and is not relevant to the carrying value on the balance sheet.

The Carrying Value of an Intangible Is