New Ventures Corp. ,a publicly accountable entity,capitalized the following costs:

Which statement is correct?

Question

New Ventures Corp. ,a publicly accountable entity,capitalized the following costs:

Which statement is correct?

Quizplus · Accepted Answer

Capitalized costs can include both intangible assets (such as patents) and tangible assets (such as buildings). Intangible assets typically have indefinite useful lives, while tangible assets have definite useful lives. However, even tangible assets can have useful lives that are shorter than their legal lives (which are typically determined by the entity's local laws and regulations). Therefore, Option D is correct. Options A, B, and C are incorrect because they make assumptions about the nature of the assets that cannot be determined solely from the information provided.