ACC 304 All Assignments ACC 304 All Assignments | Page 199

8 . The cost of purchased patents should be amortized over the remaining legal life of the patent .
9 . If a new patent is acquired through modification of an existing patent , the remaining book value of the original patent may be amortized over the life of the new patent .
10 . In a business combination , a company assigns the cost , where possible , to the identifiable tangible and intangible assets , with the remainder recorded as goodwill .
11 . Internally generated goodwill should not be capitalized in the accounts .
12 . Internally generated goodwill associated with a business may be recorded as an asset when a firm offer to purchase that business unit has been received .
13 . All intangibles are subject to periodic consideration of impairment with corresponding potential write-downs .