Regarding impairment of intangible assets, which of the following statements is incorrect?
A) Impairment occurs when the fair value of an intangible asset is less than the book value.
B) Intangible assets are impaired when there has been a permanent decline in the value of the asset.
C) Intangible assets are tested for impairment annually.
D) If any impairment occurs, the company records a loss in the period in which the intangible asset was acquired.
D
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Arnold, Inc. declares and distributes a 10% common stock dividend when it has 70,000 shares of $100 par value common stock outstanding. If the market value of the common stock is $20, the journal entry to record the stock dividend would include a:
A) debit to Retained Earnings $140,000. B) debit to Retained Earnings $700,000. C) credit to Paid-in Capital in Excess of Par—Common $140,000. D) credit to Paid-in Capital in Excess of Par—Common $700,000.