Question

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

Organization costs $20,640
Trademarks 16,710
Discount on bonds payable 35,120
Deposits with advertising agency for ads to promote goodwill of company 10,900
Excess of cost over fair value of net identifiable assets of acquired subsidiary 80,500
Cost of equipment acquired for research and development projects; the
equipment has an alternative future use 94,120
Costs of developing a secret formula for a product that is expected to
be marketed for at least 20 years 85,630

On the basis of this information, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at year-end. Equipment has alternative future use.

Answer 1

$97,210

Step-by-step explanation:

The computation of the total amount to be reported by Hyde for intangible assets is calculated below:

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

= $16,710 + $80,500

= $97,210

In order to find out the intangible assets we considered the trademarks and the excess of cost over fair value only.