Question

The general ledger of Vance Corporation as of December 31, 2021, includes the following accounts:

Copyrights $ 50,000
Deposits with advertising agency (will be used to promote goodwill) 27,000
Discount on bonds payable 70,000
Excess of cost over fair value of identifiable net assets of
Acquired subsidiary 480,000
Trademarks 90,000
In the preparation of Vance's balance sheet as of December 31, 2021, what should be reported as total intangible assets?

Answer 1

$620,000

Step-by-step explanation:

Particulars Amount

Copyright $50,000

Deposits with advertising agency (Prepaid expenses) $0

Discount on bonds payable (Contra account) $0

(Goodwill) Excess of cost over fair value of $480,000

identifiable net assets of acquired subsidiary

Trademark $90,000

Total intangible assets $620,000