Joni Hyde Inc. has the following amounts included in its general ledger at December 31, 2008. Organization

Question:

Joni Hyde Inc. has the following amounts included in its general ledger at December 31, 2008.

Organization costs ........................ $24,000

Trademarks ............................ 15,000

Discount on bonds payable ...................... 35,000

Deposits with advertising agency for ads to promote goodwill of company ... 10,000

Excess of cost over fair value of net identifiable assets of acquired subsidiary . 75,000

Cost of equipment acquired for research and development projects; the

equipment has an alternative future use ................. 90,000

Costs of developing a secret formula for a product that is expected to

be marketed for at least 20 years .................... 80,000

Instructions

(a) On the basis of the information above, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at December 31, 2008.

(b) If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.

Goodwill
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