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Question:

Degen, Inc., owns a trademark which it originally valued at €15 million on its balance sheet but currently values at €10 million. In the country where Degen is incorporated, trademarks are protected by law for as long as their owner remains a going concern. Degen has most likely.

A recognized €5 million of impairment charges on its trademark.
Explaination

The trademark is an intangible asset with an indefinite life, and its cost is not amortized. The decrease in the trademarks balance sheet value must be the result of impairment. For the intangible asset to appear on the balance sheet, Degen must have purchased the trademark. If Degen had developed the trademark internally, it would have expensed the cost rather than capitalizing it to the balance sheet.