The cost of a copyright should
A)be amortized over a period not to exceed the life of the author plus 50 years
B)be amortized over a period not to exceed 20 years, unless the right is renewed
C)not be amortized and the cost should be capitalized as an asset with indefinite life
D)be amortized over a period not to exceed its economic life

Question

Quizplus · Accepted Answer

Copyrights have an economic life, which is the length of time that they are expected to earn revenue for the owner. Therefore, the cost of a copyright should be amortized over a period not to exceed its economic life, which may be shorter than the life of the author plus 50 years or 20 years. Choice A and B are incorrect because they impose fixed time limits that may not reflect the actual economic life of the copyright. Choice C is incorrect because it assumes that the copyright will generate revenue indefinitely, which may not be the case.

The Cost of a Copyright Should