Question

The following is a list of items that might or might not be classified as intangible assets or goodwill: 1. Goodwill recorded in the purchase of a business 2. Equipment obtained under an operating lease 3. Cost of purchasing a copyright 4. Cost of purchasing a trademark 5. Research costs involving tests of chemicals to use in a new medication that has not yet been developed 6. Goodwill generated internally 7. Aircraft acquired using a finance lease 8. Cost of purchasing a patent 9. Legal costs incurred to unsuccessfully defend a patent (see item 8) 10. Development costs incurred to manufacture a sample product that can and will be sold in the future

Answer 1

NA Classification NA Operating Expense NA NA Lists 1 Goodwill recorded in the purchase of business 2 Equipment obtain under an operating lease 3 Costs of purchasing a copyright 4 Costs of purchasing a trade mark 5 Research costs involving tests of chemicals to use in a new medication that has not yet been developed 6 Goodwill generated internally 7 Aircraft acquired using a finance lease 8 Cost of purchasing a patent 9 Legal costs incurred to unsuccessfully defend a patent (see item 8) 10 Development costs incurred to manufacture a sample product that can and will be sold in the future Account title Financial Statement NA Rent (Lease) Expenses Income statement NA NA NA NA Research Expense Income statement NA Notes to the financial statements Assets under finance lease Statement of financial position NA NA Professional Fees Expenses Income statement Research Expense Income statement Operating Expense Property, Plant and Equipment ΝΑ Operating Expense Operating Expense