Ask Question
21 August, 07:34

Northstar Co. acquired a registered trademark for $600,000. The trademark has a remaining legal life of five years, but can be renewed every 10 years for a nominal fee. Northstar expects to renew the trademark indefinitely. What amount of amortization expense should Northstar record for the trademark in the current year

+5
Answers (1)
  1. 21 August, 11:19
    0
    The trademark can not be amortized as its life is indefinite

    Explanation:

    The international accounting standard IAS 38 Intangible assets says that the intangible assets must be amortized over its useful life and if the useful life of an asset is indefinite (Just like land) then the assets must not be amortized. So the amortization charge will be zero.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Northstar Co. acquired a registered trademark for $600,000. The trademark has a remaining legal life of five years, but can be renewed ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers