Question
The following is a list of items that might or might not be classified as intangible assets or goodwill: 1. Goodwill recorded in the purchase
The following is a list of items that might or might not be classified as intangible assets or goodwill:
1. | Goodwill recorded in the purchase of a business | ||
2. | Equipment obtained under an operating lease | ||
3. | Cost of purchasing a copyright | ||
4. | Cost of purchasing a trademark | ||
5. | Research costs involving tests of chemicals to use in a new medication that has not yet been developed | ||
6. | Goodwill generated internally | ||
7. | Aircraft acquired using a finance lease | ||
8. | Cost of purchasing a patent | ||
9. | Legal costs incurred to unsuccessfully defend a patent (see item 8) | ||
10. | Development costs incurred to manufacture a sample product that can and will be sold in the future |
Identify which of the above items would be reported as intangible assets or goodwill on the statement of financial position. Next, for those items above reported as intangible assets or goodwill, identify the specific account title that would be used to record the asset (Copyright, N/A, Trademark, Patents, Development Costs, Goodwill)
For any of the above items that are not intangible assets or goodwill, identify the specific account title, financial statement, and classification under which it would be reported. If it would not be reported on any financial statement, select NA.
Account title options: Assets under financial leases, research expense, rent expense, professional fees expense
Financial statement options: Rent income, income statement, statement of financial position, notes to the financial statement
Classification options: operating expenses, operating income, current assets, property, plant and equipment.
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