Mega Industries has an intangible asset is being amortized over a ten-year time period. However, a competitor has just introduced a new product that will have a serious negative impact on the asset's value. Should the company continue to amortize the intangible asset over the ten-year life? Explain


If an intangible becomes worthless, the asset should be written off as an expense in the period when the decline in value occurs. If the intangible continues to have value but will provide benefit over a period shorter than was originally estimated, the event should be treated as a change in estimate. The portion of the intangible that is unamortized should be amortized over the remaining life of the asset.

Business

You might also like to view...

Discretionary income is the money available to a household over and above that required for a comfortable standard of living

Indicate whether the statement is true or false

Business

A convertible security is used in the computation of

a. diluted earnings per share. b. simple earnings per share. c. undiluted earnings per share. d. primary earnings per share.

Business

Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities

A) positioning B) marketing C) outsourcing D) production E) logistics

Business

Identify the preposition or prepositions in the sentence. Gina and Mario walked beside the lake

Business