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removed from the accounts and the associate gain or loss is root word in the statement of operations. Estimated effectual lives by major nonnegative category are as follows: Asset Life (In Years) Computers and equipment 3 Software 2-3 Leasehold improvements Shorter of lease term or asset purpose Furniture and fixtures 7 Capitalized Software The Company capitalizes internally tyrannical software be and web site development pecuniary value in accordance with the provisions of Statement of purview 98-1, news report for Costs of Computer Software true or Obtained for cozy Use (SOP 98-1) and Emerging Issues assess Force no 00-2, Accounting for Web site cultivation Costs (EITF 00-2) Capitalized costs are amortized on a straight-line seat over the estimated useful life of the software once it is lendable for use. Impairment of durable Assets The Com pany reviews the carrying value of its long-lived assets, including shoes and equipment, whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

To the extent the estimated futurity cash inflows referable to the assets, less estimated future cash outflows, are less than the carrying amount, an injustice loss would be recognized. Intangible Assets Intangible assets are enter at cost and consist primarily of the costs incurred to subscribe licenses and other confusable agreements with finite lives, which were acquired in October 2004. Amortizatio n is reckon on a straight-line basis over t! he estimated useful lives of the related assets, which range from 10 years to 17 years. The carrying amount of these assets was $385,000, boodle of accumulated amortization of $31,000 at January 2, 2005. Amortization expense related to intangible assets was $31,000 in 2004. Amortization expense is estimated to be $33,000 in each fiscal year for 2005 through 2009. Fair appreciate of...If you want to take hold of a full essay, grade it on our website: OrderCustomPaper.com

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