Question

Given the following account balances at year end, compute the total intangible assets on the balance sheet of Anisha Enterprises.
Cash $1,500,000Accounts Receivable 4,000,000Trademarks 1,000,000Goodwill 4,500,000Research & Development Costs 2,000,000

a. $11,500,000
b. $7,500,000
c. $5,500,000
d. $9,500,000

Answer 1

Answer:

Option (c) is correct.

Explanation:

Intangible assets refers to the assets which we cannot see and touch.

Goodwill = $4,500,000

Trademarks = $1,000,000

Hence, the total intangible assets on the balance sheet of Anisha Enterprises is as follows:

= Trademarks + Goodwill

= $1,000,000 + $4,500,000

= $5,500,000

Therefore, the total intangible assets is $5,500,000.