Langrova Inc. has the following amounts included in its general ledger at December 31, 2010.
Organization costs $24,000
Trademarks 20,000
Discount on bonds payable 35,000
Deposits with advertising agency for ads to promote goodwill of company 10,000
Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,000
Cost of equipment acquired for research and development projects; the
equipment has an alternative future use 90,000
Costs of developing a secret formula for a product that is expected to
be marketed for at least 20 years 80,000
On the basis of the information above, compute the total amount to be reported by Langrova for intangible assets on its balance sheet at December 31, 2010. Equipment has alternative future use.
Categorized | Affiliate Marketing 101
Accounting Homework (intangible Asset)?
Posted on January 31, 2011.
Organization costs $24,000
Expenses
Trademarks 20,000
Intangible asset
Discount on bonds payable 35,000
Amortized as an expense.
Deposits with advertising agency for ads to promote goodwill of company 10,000
Expenses
Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,000
Intangible asset–Goodwill
Cost of equipment acquired for research and development projects; the
equipment has an alternative future use 90,000
Fixed asset
Costs of developing a secret formula for a product that is expected to
be marketed for at least 20 years 80,000
Expense
The only intangible assets would be the trademark (20,000) and the goodwill (75,000)