Which of the following assets typically have a definite life and should be amortized over a period of its useful life?Select answer from the options belowa franchisea trademarkgoodwilla patent

The assets that typically have a definite life and should be amortized over a period of its useful life are a franchise and a patent.

Here's why:

a) A franchise: This is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business. The franchise agreement usually includes a specified term of years and can be amortized over that period.

d) A patent: This is a government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention. Patents have a definite life (up to 20 years), which makes it possible to amortize them over their useful life.

On the other hand:

b) A trademark: This is a recognizable sign, design, or expression which identifies products or services of a particular source from those of others. Trademarks can be renewed indefinitely and therefore, they have an indefinite life. They are not amortized but rather tested for impairment annually.

c) Goodwill: This is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process. Goodwill does not have a definite life and is not amortized. Instead, it is tested annually for impairment.