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A10-5 Amortization or Impairment: Technology Inc. (TI) has the following intangible assets: Case A TI acquired a patent from another company that expires in 10
A10-5 Amortization or Impairment: Technology Inc. (TI) has the following intangible assets: Case A TI acquired a patent from another company that expires in 10 years. The purpose of the purchase was to Case B Case C eliminate competition for one of its top-selling products. Based on market surveys, the product will continue to have sales for at least the next eight years. TI intends to hold the patent but not manufacture the product. TI acquired a second patent from another company that expires in 15 years. The company intends to manufacture the product. Based on market surveys, this product will have strong sales for at least the next 10 years or until another competitor enters the market with a similar product. TI acquired a quota that can be renewed indefinitely at a minimal cost. TI's intention is to continue to renew the quota. These quotas are high in demand and very difficult to obtain. Case D TI has a registered trademark that it has used for 10 years for one of its top-selling products. TI intends to renew the trademark indefinitely. Required: Should the intangible assets be amortized or just tested for impairment? If amortized, what is the appropriate period? Support your response
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