Question

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

Organization costs $24,100

Trademarks 16,300

Discount on bonds payable 37,100

Deposits with advertising agency for ads to promote goodwill of company 12,100

Excess of cost over fair value of net identifiable assets of acquired subsidiary 77,100

Cost of equipment acquired for research and development projects; the

equipment has an alternative future use 87,100

Costs of developing a secret formula for a product that is expected to

be marketed for at least 20 years 83,200

(a)

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

Total amount reported for intangible assets $

Answer 1

$93,400

Step-by-step explanation:

Data provided in the question:

Organization costs = $24,100

Trademarks = 16,300

Discount on bonds payable = 37,100

Deposits with advertising agency for ads to promote goodwill of company = 12,100

Excess of cost over fair value of net identifiable assets = 77,100

Costs of developing a secret formula = 83,200

Now,

Total amount reported for intangible assets will be

= Trademarks + Excess of cost over fair value of the net identifiable assets of acquired subsidiary

or

Total amount reported for intangible assets = $16,300 + $77,100

or

Total amount reported for intangible assets = $93,400