SoftKey International Inc., headquartered in Cambridge, Massachusetts, noted amortization period. in its 1994 annual report that, beginning
Question:
SoftKey International Inc., headquartered in Cambridge, Massachusetts, noted amortization period. in its 1994 annual report that, beginning that year, it changed the estimated life of its
(SO 7) computer software for amortization purposes from a 3-year life to a 12-year life.
Instructions
==> Write a short memo explaining the implications this has for the analysis of Softkey’s results. Also, discuss whether this estimated life seems reasonable.
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