Liang Inc. is a new concept on-line store that has proven to be very popular in the past year. Mr Liang and her team worked very hard in the past year in developing the brand and she indicated that she spent approximately $5,000,000 in a large marketing and customer service initiative. In an article published in December 2016, the business journal has indicated that their brand name is estimated to be worth $12,000,000 based on an analysis they performed. On their balance sheet for December 31, 2016, Liang Inc should record: a) An intangible asset worth $5,000,000 B b) An intangible asset worth $7,000,000 c) An intangible asset worth $12,000,000 d) No intangible asset should be recorded at December 31, 2016.
Liang Inc. is a new concept on-line store that has proven to be very popular in the past year. Mr Liang and her team worked very hard in the past year in developing the brand and she indicated that she spent approximately $5,000,000 in a large marketing and customer service initiative. In an article published in December 2016, the business journal has indicated that their brand name is estimated to be worth $12,000,000 based on an analysis they performed. On their balance sheet for December 31, 2016, Liang Inc should record: a) An intangible asset worth $5,000,000 B b) An intangible asset worth $7,000,000 c) An intangible asset worth $12,000,000 d) No intangible asset should be recorded at December 31, 2016.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:S. Liang Inc. is a new concept on-line store that has proven to be very popular in the past year. Mrs.
Liang and her team worked very hard in the past year in developing the brand and she indicated that
she spent approximately $5,000,000 in a large marketing and customer service initiative. In an
article published in December 2016, the business journal has indicated that their brand name is
estimated to be worth $12,000,000 based on an analysis they performed.
On their balance sheet for December 31, 2016, Liang Inc should record:
a) An intangible asset worth $5,000,000
b) An intangible asset worth $7,000,000
c) An intangible asset worth $12,000,000
d) No intangible asset should be recorded at December 31, 2016.
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