Questions: Which of the following options is NOT a category for intangible assets? Section 197 purchased intangibles Natural resources Start-up expenditures and organizational costs Patents and copyrights Research and experimentation costs

The answer is B: Natural resources.

Explanation for each option:

A. Section 197 purchased intangibles - This is a category for intangible assets. Section 197 of the Internal Revenue Code allows for the amortization of certain intangible assets over a 15-year period. Examples include goodwill, trademarks, and franchises.

B. Natural resources - This is NOT a category for intangible assets. Natural resources, such as oil, minerals, and timber, are considered tangible assets because they have a physical presence and can be measured and quantified.

C. Start-up expenditures and organizational costs - These can be considered intangible assets. Although they are not physical, they represent costs incurred to establish a business and can be amortized over time.

D. Patents and copyrights - These are classic examples of intangible assets. They represent legal rights and protections for inventions and creative works, respectively, and do not have a physical form.

E. Research and experimentation costs - These can be considered intangible assets. They represent the costs associated with developing new products or processes and can be capitalized and amortized under certain conditions.

In summary, natural resources are not considered intangible assets, as they are physical and quantifiable, unlike the other options listed.