Question

Joni Metlock Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization costs $22,300
Trademarks 12,700
Discount on bonds payable 35,300
Deposits with advertising
agency for ads to promote
goodwill of company 10,300
Excess of cost over fair
value of net identifiable
assets of acquired subsidiary 75,300
Cost of equipment acquired for
research and development projects;
the equipment has an alternative future use 85,300
Costs of developing a secret formula for a
product that is expected to be marketed for
at least 20 years 79,600
On the basis of this information, compute the total amount to be reported by Metlock for intangible assets on its balance sheet at year-end.

Answer 1

Answer:

$88,000

Explanation:

Computation of the total amount to be reported as intangible assets on its balance sheet

Using this formula

Total amount to be reported as intangible assets = Trademarks + Excess of cost over fair value of net assets of acquired subsidiary

Let plug in the formula

Total amount to be reported as intangible assets = $12,700 + $75,300

Total amount to be reported as intangible assets = $88,000

Therefore the total amount to be reported as intangible assets on its balance sheet bat year end will be $88,000