Chapter 12. Intangible Assets
Intangible assets are assets that have no physical substance. In general, intangible assets are rights or privileges of some sort. The assets that are typically classified as intangible are patents, copyrights, franchises, trademarks, and trade names. It's important to remember that the cost recorded is not the value of the intangible asset, but only the amount spent to acquire it. Let's go back a hundred years or so in time and pretend we are Coca-Cola. We come up with the name Coca-Cola (and Coke), and we think it is kind of catchy, so we decide to use it for our product. We pay a lawyer to file the legal papers necessary to protect the name. Let's say that the cost of filing the papers and paying the lawyer comes ...
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