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Clearly distinguish between tangible and intangible assets. What are the tangible and intangible values attached to a computer software program? Please let me know if

Clearly distinguish between tangible and intangible assets. What are the tangible and intangible values attached to a computer software program? Please let me know if you are weally to help me with this homework asap. Thank you

image text in transcribed The essay is about 5 paragraphs, and each one has to have 4 to 5 sentences. The question is : Clearly distinguish between tangible and intangible assets. What are the tangible and intangible value attached to a computer software program? Tangible assets are those assets which have physical structure. They consist of both current assets such as cash and inventory and noncurrent assets such as equipment. These assets are needed in the business for continuous operation. Intangible assets on the other hand are virtual assets. These assets include goodwill, patents, copyrights and software development cost. Intangible assets add to company's possible future worth. When the value presumed to be worth is not probable they are amortized or written off. Computer software program can either be classified as a tangible asset or intangible asset. Computer software may be classified as a tangible asset if 1) is being used in the provision of goods and services thus classified as under PPE. For instance, a firm would capitalize computer software as PPE since it is utilized in a substantial part of the firm's operations. 2) Its cost more than $100,000 and hence is capitalized and classified as PPE and would then be amortized over its useful life. If the computer software program does not meet the 2 conditions above, whether purchased or developed will be classified as an intangible asset

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