Final answer:
Limited-life intangibles are reported at their carrying amount on the balance sheet, adjusted for amortization and impairment losses when applicable.
Step-by-step explanation:
Limited-life intangibles are reported at their carrying amount unless impaired. When an asset is considered to have a limited useful life, it is subject to amortization, which systematically reduces its value on the balance sheet over time, representing the consumption of the asset. As time progresses and the asset is utilized, its carrying amount is adjusted for this amortization expense. If there is evidence that the intangible asset has been impaired, meaning that its fair market value has dropped below its carrying amount, an impairment loss must be recognized to write down the asset to its recoverable amount.