If the pattern in which an intangible asset's benefits will be used up CANNOT be determined, the amortization method most likely to be used is
A) straight-line.
B) capital cost allowance.
C) units of production.
D) double declining-balance.

Question

Quizplus · Accepted Answer

Straight-line amortization is the most appropriate method for intangible assets whose pattern of benefits cannot be determined as it evenly spreads the cost of the asset over its useful life. Other methods, such as units of production or double declining-balance, require an estimation of the expected usage or wear and tear of the asset, which may not be possible with an intangible asset. Capital cost allowance is a tax-related concept that is not relevant to the amortization of intangible assets.

If the Pattern in Which an Intangible Asset's Benefits Will