NACVA Exam CVA Topic 6 Question 93 Discussion

Actual exam question for NACVA's CVA exam

Question #: 93
Topic #: 6

[All CVA Questions]

Impairment is the difference in value between the carrying amount of goodwill and the actual fair value of the goodwill. However, for federal income tax reporting purposes:

AThe cost of developing, maintenance, or restoring intangibles which are unidentifiable, have indeterminate lives, or are inherent in a continuing enterprise should be expensed as incurred.

BSuch intangibles assets which are purchased must be carried at cost and amortized over their useful lives and cannot be written down or written off at date of acquisition.

CIdentifiable intangible assets with an indefinite life should not be amortized

DThe cost of developing, maintenance, or restoring intangibles which are unidentifiable, have indeterminate lives, or are inherent in a continuing enterprise should be expensed as incurred. By contrast, such intangibles assets which are purchased must be carried at cost and amortized over their useful lives and cannot be written down or written off at date of acquisition.

Show Suggested Answer

Suggested Answer: C

by Daniela at Aug 08, 2024, 04:46 AM

Limited Time Offer

25%

23 days ago

I think the answer is C) Identifiable intangible assets with an indefinite life should not be amortized.

upvoted 0 times

...