Q 2: Langrova SpA has the following amounts reported in its general ledger at December 31, 2019.

Organization costs 24,000

Trademarks 20,000

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 (all research phase) 70,000

Required:

1. On the basis of the information above, compute the total amount to be reported by Langrova for intangible assets on its statement of financial position at December 31, 2019. As noted, the equipment has alternative future use.
2. If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.