Williams Inc. has the following amounts included in its general ledger at the end of the current year: Organization costs ....................................... $130,000 Trademarks ................................... 160,000 Discount on bonds payable ........................... 55,000 Deposits with an advertising agency for ads to promote the goodwill of company ................. 30,000 Excess of cost over the fair value of net identifiable assets of acquired subsidiary ............................. 750,000 Cost of equipment acquired for research and development projects; the equipment has an alternative future use .................. 350,000 Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years .............................. 900,000 Instructions (a)Using the information above, compute the total amount to be reported by Williams for intangible assets on its balance sheet at year-end. (b)If an item is not to be included in intangible assets, explain how this item should be treated for reporting purposes.
Williams Inc. has the following amounts included in its general ledger at the end of the current year:
Organization costs ....................................... $130,000
Trademarks ................................... 160,000
Discount on bonds payable ........................... 55,000
Deposits with an advertising agency for ads to promote the
Excess of cost over the fair value of net identifiable assets of acquired subsidiary ............................. 750,000
Cost of equipment acquired for research and development projects; the equipment has an alternative future use .................. 350,000
Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years .............................. 900,000
Instructions
(a)Using the information above, compute the total amount to be reported by Williams for intangible assets on its
(b)If an item is not to be included in intangible assets, explain how this item should be treated for reporting purposes.
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