Smith Company has purchased a franchise with an indefinite life for $1,000,000. How should Smith Company account for this franchise? Group of answer choices answer 

Smith Company should assume some reasonable period, not longer than 40 years, and amortize the franchise over that period. It should also be reviewed for impairment. 

Smith Company should assume some reasonable period, not longer than 40 years, and amortize the franchise over that period. 

Smith Company should evaluate the asset for impairment each year