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What is an intangible asset?

ASSET intangible
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What is an intangible asset?

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Intangible assets are capital assets that have the following characteristics: • Lack physical substance • They are not financial instruments such as: cash, investments and receivables • Initial useful life greater than 1 year Examples: easements, water rights, patents, trademarks, computer software (not the transmission media, just the programming)

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