E11.3 (LO 1, 3, 4) Excel (Classification Issues—Intangible Assets) Joni Hyde Inc. has the fol-lowing amounts reported in its general ledger at the end of the current year. Organization costs Trademarks Discount on bonds payable Deposits with advertising agency for ads to promote goodwill of company Excess of cost over fair value of net identifiable assets of acquired subsidiary Cost of equipment acquired for research and development projects; the equipment has an alternative future use Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years $24,000 15,000 35,000 10,000 75,000 90,000 80,000 Instructions a. On the basis of the information above, compute the total amount to be reported by Hyde for intan-gible assets on its balance sheet at year-end. b. If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.
E11.3 (LO 1, 3, 4) Excel (Classification Issues—Intangible Assets) Joni Hyde Inc. has the fol-lowing amounts reported in its general ledger at the end of the current year. Organization costs Trademarks Discount on bonds payable Deposits with advertising agency for ads to promote goodwill of company Excess of cost over fair value of net identifiable assets of acquired subsidiary Cost of equipment acquired for research and development projects; the equipment has an alternative future use Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years $24,000 15,000 35,000 10,000 75,000 90,000 80,000 Instructions a. On the basis of the information above, compute the total amount to be reported by Hyde for intan-gible assets on its balance sheet at year-end. b. If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.
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