E12-3 (Classification Issues - Intangible Asset) Joni Hyde Inc. has the following amounts included in its general ledger at December 31, 2008.
Organization costs $24,000
Trademarks $15,000
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
Instructions
a.) On the basis of the information above, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at December 31, 2008.
b.) If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.
Click here for the solution: Joni Hyde Inc. has the following amounts included in its general ledger at December 31, 2008
