Question

For Randolph Company, the following information is available: Capitalized leases $560,000 Copyrights 240,000 Long-term receivables 210,000 In Randolph's balance sheet, intangible assets should be reported at:________

A. $800,000.
B. $210,000.
C. $770,000.
D. $240,000.

Answer 1

Answer: $240,000

Step-by-step explanation:

An intangible asset is an asset which lacks physical substance. While physical assets include assets like buildings, machinery and financial assets like government securities, the intangible assets are hard to evaluate and they include copyrights, patents, trademarks, franchises, goodwill, and trade names.

From the information provided in the equation, copyrights is $240,000 which is an intangible asset. Therefore, in Randolph's balance sheet, intangible asset should be written as $240,000.