What Is an Intangible Asset?
What Is an Intangible Asset?
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In intro accounting, one major type of intangible asset is goodwill! This occurs only when we purchase another company, and is equal to the amount by which our purchase price exceeds the net assets (fair value assets - fair value liabilities) received in the purchase. We NEVER amortize goodwill, we assume it has an indefinite life like land. However, we do have to do an annual test to determine if its value becomes impaired! #accounting #study #fyp #unitok #foryou
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