Q3) (Classification Issues—intangibles) Presented below and on the next page is a list of that could be included in the intangible assets section of the statement of financial position. Investment in a subsidiary company. Timberland, Cost of engineering activity required 10 advance the design of product to the manufacturing stage. Cost of searching for applications of new research findings. Costs incurred in the formation of a corporation. Training costs incurred in start-up of new operation. Purchase cost of a franchise. Goodwill generated internally Cost of testing in search for product alternatives. Goodwill acquired in the purchase of a business. Cost of developing a patent (before achieving economic viability). Cost of purchasing a patent from an inventor. Legal costs incurred in securing a patent. Unrecovered costs of a successful legal suit to protect the patent, Cost of conceptual formulation of possible product alternatives. Cost of purchasing a copyright. Development costs incurred after achieving economic viability. Long-term receivables. Cost of developing a trademark. Cost of purchasing a trademark. Instructions A. Indicate which items on the list above would generally be reported as intangible assets in the statement of financial position.                   B. Indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Q3) (Classification Issues—intangibles) Presented below and on the next page is a list of that could be included in the intangible assets section of the statement of financial position.

  1. Investment in a subsidiary company.
  2. Timberland,
  3. Cost of engineering activity required 10 advance the design of product to the manufacturing stage.
  4. Cost of searching for applications of new research findings.
  5. Costs incurred in the formation of a corporation.
  6. Training costs incurred in start-up of new operation.
  7. Purchase cost of a franchise.
  8. Goodwill generated internally
  9. Cost of testing in search for product alternatives.
  10. Goodwill acquired in the purchase of a business.
  11. Cost of developing a patent (before achieving economic viability).
  12. Cost of purchasing a patent from an inventor.
  13. Legal costs incurred in securing a patent.
  14. Unrecovered costs of a successful legal suit to protect the patent,
  15. Cost of conceptual formulation of possible product alternatives.
  16. Cost of purchasing a copyright.
  17. Development costs incurred after achieving economic viability.
  18. Long-term receivables.
  19. Cost of developing a trademark.
  20. Cost of purchasing a trademark.

Instructions

A. Indicate which items on the list above would generally be reported as intangible assets in the statement of financial position.                  

B. Indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements.                                                 

 

Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Accounting for Intangible assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education