Account For Intangible Assets And Goodwill Practice Test

A for-profit business entity, Summit Retail, acquired a customer relationship intangible asset in a business combination and determined it has a finite useful life. During the year, Summit identifies indicators of impairment for this finite-lived intangible asset. Under FASB ASC 360 as applied to finite-lived intangible assets, what is the appropriate accounting treatment for subsequent measurement when impairment indicators exist?

A for-profit business entity, Delta Biotech, acquired a patented technology in an asset acquisition for cash and determined the patent has a remaining legal life of 12 years and an expected economic life of 8 years. Delta expects the patent to generate cash flows evenly over its economic life and will review it for impairment when events indicate possible impairment. Under FASB ASC 350, what is the correct amortization period for this finite-lived intangible asset?