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Why might a company dispose of a long-lived intangible asset?

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Final answer:

A company may dispose of a long-lived intangible asset if it is no longer useful or relevant, for financial reasons, or due to changes in the business environment or industry dynamics.

Step-by-step explanation:

A company might dispose of a long-lived intangible asset for several reasons. One reason could be that the asset is no longer useful or relevant to the company's operations. For example, if a technology company develops a new software platform, they may dispose of an old software patent that is no longer valuable or profitable. Another reason could be financial considerations. If a company needs to generate cash flow quickly, they may choose to sell or dispose of long-lived intangible assets to raise funds. Lastly, changes in the business environment or industry dynamics could also lead a company to dispose of assets. For instance, if a company operates in a declining industry, they may choose to dispose of certain assets to focus on more profitable areas.

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