exercise12-3

A B D E F H ON 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 251 E12-3 (Classification Issues-Intangible Asset) Joni Hyde Inc. has the following amounts reported in its general ledger at the end of the current year. Organization costs $24,000 Trademarks $15,000 Discount on bonds payable $35,000 Deposits with advertising agency for ads to promote goodwill $10,000 of company Excess of cost over fair value of net identifiable assets of acquired $75,000 subsidiary 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. Equipment has alternative future use. A B 24 E use. 25 26 Text Title 27 Text Title Amount 28 29 Amount Text Title Formula 30 31 (b) If an item is not to be included in intangible assets, explain its proper treatment for reporting 32 purposes 33 34 Enter text answer here. 35 36 37 38 39 Enter text answer here. 40 41 42 43 Instruction Excercise 123 E o 3 Type here to search