Question

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

Organization costs		$22,600
Trademarks		13,300
Discount on bonds payable		35,600
Deposits with advertising agency for ads to promote goodwill of company		10,600
Excess of cost over fair value of net identifiable assets of acquired subsidiary		75,600
Cost of equipment acquired for research and development projects;        the equipment has an alternative future use		85,600
Costs of developing a secret formula for a product that is expected        to be marketed for at least 20 years		80,200

(a)

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

Total amount reported for intangible assets

$enter the total dollar amount to be reported for intangible assets

Answer 1

Total amount reported for intangible assets = Trademarks + Excess of cost over fair value of net identifiable assets of acquired subsidiary = 13,300 + 75,600 = 88,900