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In order to determine the amount an intangible asset should be amortized is cost less the residual value, which is the same formula used to determine the depreciation of a tangible asset. In determining the intangible assets with an indefinite life, a company must define an intangible asset. Intangible assets that are defined as having an indefinite life are trademarks and trade names. Finally, goodwill is an unidentifiable intangible asset. Employees of a company are goodwill to the company. The employees help the company's revenue increase. The employees are often referred to as "intellectual capital" because they are an unrecorded asset...
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