Answered: Assets Classified as Intagible Assets…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Assets Classified as Intagible Assets

Required: What is the total amount to be recognized as intangible assets?

Transcribed Image Text:Problem 3. The following items are included in the Intangible Asset Account of Goodwill Inc.: Investment in an Associate Company Agricultural Land Research and development costs Initial Operating Losses Organization costs in forming corporation Internally generated goodwill Cost of purchasing a trademark Operating software of a personal computer Long-term receivables Cost of developing a trademark Computer software for a computer-controlled machine that cannot operate without the software Legal costs incurred in securing a patent Purchase of a franchise P1,000,000 2,000,000 200,000 300,000 100,000 200,000 300,000 200,000 100,000 500,000 100,000 200,000 300,000 300,000 200,000 300,000 200,000 400,000 300,000 200,000 100,000 300,000 500,000 100,000 200,000 150,000 100,000 200,000 300,000 Lease prepayments Engineering follow through during production Cost of equipment obtained under a finance lease Internally generated mastheads Cost of purchased customer lists Internally generated brand Cost of purchased publishing titles Training costs incurred in start-up operation Goodwill from business combination Cost of testing in search for product alternatives Cost of developing a software before technical feasibility Cost of purchasing a patent from an investor Legal costs in successful defense of a patent Legal costs in unsuccessful defense of a patent Cost of conceptual formulation of possible product alternatives Cost of purchasing a copyright Infrastructure asset when the concession operator has received a right or license to charge users for the public service and the revenue receivable is not agreed upon in advance 1,000,000 Infrastructure asset when the concession operator has a guaranteed contractual right to receive a specific amount of cash over the life of the arrangement 2,000,000 Required: What is the total amount to be recognized as intangible assets?

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