Question

Platteville Corporation has the following account balances at 12/31/15:

Amortization expense $ 20,000
Goodwill 280,000
Patent, net of $60,000 amortization 140,000
What amount should Platteville report for intangible assets on the 12/31/12 balance sheet?

Answer 1

Platteville Corporation should report a total of $420,000 for intangible assets on the 12/31/15 balance sheet, consisting of Goodwill ($280,000) and a Patent ($140,000).

Step-by-step explanation:

The amount Platteville Corporation should report for intangible assets on the 12/31/15 balance sheet is the sum of the net balances of the individual intangible assets. According to the information provided, the company has two intangible assets listed, Goodwill and Patent.

Goodwill has a balance of $280,000 and doesn't typically amortize. The Patent has an original balance with $60,000 amortization already subtracted, which results in a net balance of $140,000. Therefore, the total amount for intangible assets that should be reported on the balance sheet as of 12/31/15 is the sum of Goodwill and Patent, equating to $420,000 ($280,000 + $140,000).