CAF-2 · Chapter 8 · Question 8 of 15
Alpha Ltd acquired a secret formula (an intangible) to be used in its business. The useful life of this intangible cannot be ascertained. Over how many years will this intangible be amortized for tax purposes?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) 15 years
Explanation
Under Section 24, an intangible which does not have an ascertainable useful life shall be treated as if it had a normal useful life of exactly fifteen (15) years.
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