We record purchased intangible assets at their original cost plus all other costs necessary to get the asset ready for use.

Question

Quizplus · Accepted Answer

This statement is true. When purchasing intangible assets, any additional costs required to get the asset ready for use should also be included in the original cost of the asset. This means that the total cost of the asset is recorded on the balance sheet, rather than just the purchase price.

We Record Purchased Intangible Assets at Their Original Cost Plus