1. When an intangible asset is amortized, should the asset’s amortization occur over its legal life or its useful life? Give an example in which the legal life exceeds the useful life.
2. Suppose that an intangible asset is being amortized over a ten-year time period but a competitor has just introduced a new product that will have a serious negative impact on the asset’s value. Should the company continue to amortize the intangible asset over the ten-year life?
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