Intangible Assets

Make sure your response addressing the following questions is more than 200 words and that you include a brief paraphrase or direct quote from the reading material where appropriate. Include proper in-text citations for each paraphrase or direct quote, as shown in the UAGC Writing Center’s Citing Within Your Paper (Links to an external site.) guide.

Discussion Questions

Ahorita Company manufactures wireless transponders for satellite applications. Ahorita has recently acquired Zelltech Company, which is primarily known for its software communications development, but also manufactures a specialty transponder under the trade name “Z-Tech” that competes with one of Ahorita’s products. Ahorita will now discontinue Z-Tech and projects that its own product line will see a market share increase. Nonetheless, Ahorita’s management will maintain the rights to the Z-Tech trade name as a defensive intangible asset to prevent its use by competitors, despite the fact that its highest and best use would be to sell the trade name. Ahorita estimates that the trade name has an internal value of $1.5 million, but if sold would yield $2 million.

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Answer the following with supporting citations from the FASB Accounting Standards Codification (ASC):

  • How does the FASB ASC Glossary define a defensive intangible asset?
  • According to ASC Topic 805, “Business Combinations,” what is the measurement principle that an acquirer should follow in recording identifiable assets acquired in a business combination?
  • According to ASC Topic 820, “Fair Value Measurement,” what value premise (in-use or in-exchange) should Ahorita assign to the Z-Tech trade name in its consolidated financial statements?
  • According to ASC Topic 350, “General Intangibles Other Than Goodwill,” how should Ahorita determine the estimated useful life of its defensive intangible asset.

"Place Your Order Now And Our Professional Writers Will work on It And Deliver A perfect Paper Within The Deadline

Order Now