Intangible assets may be internally generated or purchased from another party. In either case, the cost that should be included in the initial valuation of the asset is an issue.
- Identify the typical costs included in the cash purchase of an intangible asset.
- Discuss how to determine the cost of an intangible asset acquired in a noncash transaction.
- Describe how to determine the cost of several intangible assets acquired in a basket purchase. Provide a numerical example involving intangibles being acquired for a total price of $120,000.