This posting addresses calculations for intangible assets.
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Based on the information below, compute the total amount to be reported for intangible assets on the balance sheet for the end of the year.
How do I treat intangible assets for items not to be included; how do I report?
Organization costs 24,000
Trademarks 15,000
Discounts on bonds payable 35,000
Excess cost over fair value of net identifiable assets of acquired subsidiary 75,000
Deposits with advertising agency for ads to promote goodwill of company 10,000
Cost of equipment acquired for research and development projects the equipment has an alternative future uses 90,000
Cost of developing a secret formula for a product that is expected to be marketed for at least 20 years 80,000
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Solution Summary
The solution shows how each section is calculated and includes all journal entries.
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- The organization cost of 24,000 should be treated as a regular expense.
- The trademark of 15,000 is computed like this:
Trademarks 15,000
Excess of cost of net identifiable assets of acquired ...
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