Question
Discuss the appropriate accounting treatment for the following intangible assets on 30 June2022. No entries required. a)Apublishing company purchased the magazine titlePotato Farmer in 2019
Discuss the appropriate accounting treatment for the following intangible assets on 30 June2022. No entries required. a)Apublishing company purchased the magazine title"Potato Farmer" in 2019 for $2.5 million. An additional $200.000 was spent in 2020 to market the publishing title.On 30 June 2022 the publishing company believes the publishing title can be sold for $20 million. b) A company purchased the music rights to all the works of the famous band The lnsects in2018 for $15,000,000.The rights provided the company with the ability to use the music rights forever. On 30 June 2022 following a scandal involving one of the band members the frm estimates the likely fair value of the music rights is $5,000,000. c) On 30 June 2022 a hair loss treatment company acquired the results of research conducted into possible cures for male baldness from the Western Southern University for $6,000,000. The company intends to progress the most promising parts of the research in 2023 with additional tests and trials.
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