In 1975, Riveria Company had acquired copyrights for $750,000 on several literary works from some obscure 18th century authors. These copyrights were fully amortized by 2015. In early 2015, a new anthropological discovery made these copyrights worth $2,500,000. As a result, Riveria should report which of the following in its financial statements for 2015? a. $2,500,000 as an extraordinary item b. cannot be recognized under U.S. GAAP in the financial statements c. $2,500,000 as a holding gain d. $750,000 as copyrights-based recovery of value limited to historical cost
In 1975, Riveria Company had acquired copyrights for $750,000 on several literary works from some obscure 18th century authors. These copyrights were fully amortized by 2015. In early 2015, a new anthropological discovery made these copyrights worth $2,500,000. As a result, Riveria should report which of the following in its financial statements for 2015? a. $2,500,000 as an extraordinary item b. cannot be recognized under U.S. GAAP in the financial statements c. $2,500,000 as a holding gain d. $750,000 as copyrights-based recovery of value limited to historical cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 1975, Riveria Company had acquired copyrights for $750,000 on several literary works from some obscure 18th century authors. These copyrights were fully amortized by 2015. In early 2015, a new anthropological discovery made these copyrights worth $2,500,000. As a result, Riveria should report which of the following in its financial statements for 2015?
| a. |
$2,500,000 as an extraordinary item
|
|
| b. |
cannot be recognized under U.S. GAAP in the financial statements
|
|
| c. |
$2,500,000 as a holding gain
|
|
| d. |
$750,000 as copyrights-based recovery of value limited to historical cost
|
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