Question

Joni Metlock Inc. has the following amounts reported in its general ledger at the end of the current year.

Organization costs		$22,300
Trademarks		12,700
Discount on bonds payable		35,300
Deposits with advertising agency for ads to promote goodwill of company		10,300
Excess of cost over fair value of net identifiable assets of acquired subsidiary		75,300
Cost of equipment acquired for research and development projects; the
equipment has an alternative future use		85,300
Costs of developing a secret formula for a product that is expected to
be marketed for at least 20 years		79,600

(a)

On the basis of this information, compute the total amount to be reported by Metlock for intangible assets on its balance sheet at year-end.

Total amount reported for intangible assets

$

Answer 1

(a) Total amount reported for intangible assets = Trademarks + Excess of cost over fair value of net assets of acquired subsidiary

Total amount reported for intangible assets = $12,700 + $75,300

Total amount reported for intangible assets = $88,000