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QUESTION DETAIL
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My company just acquired another firm, and with it computer software and licenses estimated at a fair value $400,000. The useful life is hard to estimate; how should I account for them?
ANSWER
Expert Mark Anderson's Answer:
The useful life of the computer software would be amortized over 36 months.
Please note that the rules concerning intangible assets enacted as part of the Revenue Reconciliation Act of 1993 (RRA) affect the determination of the amortization period for software acquired after Aug. 10, 1993.
