Which of the following statements is true? a. The amortization period of a patent is the lesser of its useful life or 20 years, whichever is shorterb. If an intangible asset has an unspecified or indeterminate life, it should be amortizedc. Research and development costs are usually added to the cost of an asset rather than expensed when incurredd. Trademarks are amortized over a period of 20 yearse. Goodwill is recorded when a business invests in itself by acquiring property, plant & equipment

Question

Business

Alexzander Valencia

8 December, 05:57

Which of the following statements is true? a. The amortization period of a patent is the lesser of its useful life or 20 years, whichever is shorterb. If an intangible asset has an unspecified or indeterminate life, it should be amortizedc. Research and development costs are usually added to the cost of an asset rather than expensed when incurredd. Trademarks are amortized over a period of 20 yearse. Goodwill is recorded when a business invests in itself by acquiring property, plant & equipment

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Answers (1)

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Sanai Park · Answer 1

Answer: Research and development cost are usually added to the cost of an asset rather than expensed when incurred.

Explanation:

Research and Development cost will be added to the cost of the asset when it meets the following criteria.

1. Willingness and abilities to complete the project.

2. It will generate future economic benefits to the firm and cost can be determined realiably

Examples are cost in developing a new product, services or materials