A franchise or licence with a limited life is
A)expensed.
B)not amortized.
C)amortized over the lesser of its legal or useful life.
D)amortized over its legal life.

Question

Quizplus · Accepted Answer

A franchise or license with a limited life is amortized over the lesser of its legal or useful life. This means that the company is spreading out the cost of the franchise or license over the period that it will benefit from it, which could be either its legal life or its useful life, whichever is shorter.

A Franchise or Licence with a Limited Life Is