Water rights purchased by a city would be considered an intangible asset.

Question

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Water rights are a type of intangible asset, as they are not physical assets but rather legal rights to use a specific quantity of water from a particular source. When a city purchases water rights, they are essentially acquiring the right to use and manage a particular water supply, and this right is recognized as an intangible asset on their balance sheet.

Water Rights Purchased by a City Would Be Considered an Intangible