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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:

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Suggested Answer: C

Contribute your Thoughts:

Merri
2 months ago
Alright, time to put on my tax accountant hat. This question is all about recognizing the right treatment for different types of intangibles.
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Iluminada
13 days ago
C) Identifiable intangible assets with an indefinite life should not be amortized
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Nan
1 months ago
B) 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.
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Cammy
1 months ago
A) The 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.
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Dusti
2 months ago
Haha, I bet the IRS wishes they could just write off all those pesky intangibles! But alas, the rules are the rules.
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Dominga
14 days ago
D) The 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.
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Veronica
18 days ago
Haha, yeah, the IRS definitely has strict rules when it comes to intangibles!
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Colette
1 months ago
C) Identifiable intangible assets with an indefinite life should not be amortized
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Tasia
1 months ago
A) The 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.
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Steffanie
2 months ago
Okay, I think I've got it. The key is distinguishing between developed and purchased intangibles. This is going to be important for my tax strategy.
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Lizbeth
2 months ago
Hmm, this seems like a tricky one. I'll need to really focus on the differences between expensing and amortizing intangibles for tax purposes.
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Corazon
1 months ago
C) Identifiable intangible assets with an indefinite life should not be amortized
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Christiane
2 months ago
A) The 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.
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Gladys
2 months ago
I disagree. I believe the answer is D) The 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.
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Macy
2 months ago
I agree with Jaime. It makes sense because identifiable intangible assets with indefinite lives should not be amortized for federal income tax reporting purposes.
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Jaime
3 months ago
I think the answer is C) Identifiable intangible assets with an indefinite life should not be amortized.
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