Iconix Brand Group owns and markets various brands and trademarks, including Joe Boxer, London Fog, Ocean Pacific,

Question:

Iconix Brand Group owns and markets various brands and trademarks, including Joe Boxer, London Fog, Ocean Pacific, Ecko Unltd., Umbro, Ed Hardy, Lee Cooper, Buffalo, and Peanuts. The company’s financial statements for the year ended December 31, 2015, indicate the following totals for these trademarks (in millions):

2015 2014 Trademarks (at cost) $1,703 $2,016 Accumulated Amortization 20 Trademarks, net 1,696 1,996


During 2015, Iconix acquired the Strawberry Shortcake and Pony trademarks at a cost of $89 million, recorded $3 million of trademark amortization for the year, and disposed of trademarks for proceeds of $3 million cash. Assume none of the trademarks were judged to be impaired during the year.


Required:

Based on the information given, determine the following for trademarks disposed of during 2015: 

(a) Their cost, 

(b) Their accumulated amortization at the time of disposal, and 

(c) The gain (loss) on disposal of trademarks.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For  book-img-for-question

Fundamentals of Financial Accounting

ISBN: 978-1259864230

6th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

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