Presented below is a list of items that could be included in the intangible assets section of the balance sheet. o 1. Investment in a subsidiary company. o 2. Timberland. o 3. Cost of engineering activity required to advance the design of a product to the manufacturing stage. o 4. Lease prepayment (6 months rent paid in advance). o 5. Cost of equipment obtained. o 6. Cost of searching for applications of new research findings. o 7. Costs incurred in the formation of a corporation. o 8. Operating losses incurred in the start-up of a business. o 9. Training costs incurred in start-up of new operation. o 10. Purchase cost of a franchise. o 11. Goodwill generated internally. o 12. Cost of testing in search for product alternatives. o 13. Goodwill acquired in the purchase of a business. o 14. Cost of developing a patent. o 15. Cost of purchasing a patent from an inventor. o 16. Legal costs incurred in securing a patent. o 17. Unrecovered costs of a successful legal suit to protect the patent. o 18. Cost of conceptual formulation of possible product alternatives. o 19. Cost of purchasing a copyright. o 20. Research and development costs. o 21. Long-term receivables. o 22. Cost of developing a trademark. o 23. Cost of purchasing a trademark. Instructions o (a) Indicate which items on the list above would generally be reported as intangible assets in the balance sheet. o (b) Indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements