Compute for the carrying value of intangible and other assets recognized in the balance sheet as of December 31, 2019. A) 2,622,250 B) 2,928,917 C) 3,122,000 D) 2,802,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Compute for the carrying value of intangible and other assets recognized in the balance sheet as of December 31, 2019.

A) 2,622,250
B) 2,928,917
C) 3,122,000
D) 2,802,000
As the recently appointed auditor for SUPERB COMPANY,
appointed auditor for SUPERB COMPANY, you have been asked to examine selected accounts. Your
audit client, organized in 2018, has setup a single account for all intangible assets. The following
summary shows the debit entries that have been recorded during 2019.
Jan 2 Purchased Patent (8-year life)
Apr 5 Goodwill
June 30 Payment of 12 months' rent on PPE leased by the
870,000
720,000
company
182,000
July 1 Purchase franchise with 10-year life; expires on July 1,
2029
900,000
Aug 3 Payment for copyright (5-year life)
Sept 1
312,000
Research and development costs related to the patent
incurred before economic viability
320,000
Transcribed Image Text:As the recently appointed auditor for SUPERB COMPANY, appointed auditor for SUPERB COMPANY, you have been asked to examine selected accounts. Your audit client, organized in 2018, has setup a single account for all intangible assets. The following summary shows the debit entries that have been recorded during 2019. Jan 2 Purchased Patent (8-year life) Apr 5 Goodwill June 30 Payment of 12 months' rent on PPE leased by the 870,000 720,000 company 182,000 July 1 Purchase franchise with 10-year life; expires on July 1, 2029 900,000 Aug 3 Payment for copyright (5-year life) Sept 1 312,000 Research and development costs related to the patent incurred before economic viability 320,000
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