Topic 9: Intangible Assets Homework Questions Answers are based on those found in the solutions manual prepared by Hong Nee Ang to accompany Loftus, Leo, Daniliuc, Boys, Luke, Ang and Byrnes (2020) Financial reporting 3rd Edition John Wiley & Sons Australia, Ltd 2020 Chapter 6: Intangible assets Exercise 6.5 Recognition of intangible assets Dory Ltd has the following: 1. the cost of purchasing a trademark 2. unrecovered costs of a successful lawsuit to protect a patent 3. goodwill acquired in the purchase of a business 4. costs of developing a patent 5. the cost of engineering activity to advance the design of a product to the manufacturing stage 6. payments to an advertising agency for advertisements to increase the goodwill of the company. Required Which of these should be included as an intangible asset in the accounts of Dory Ltd? Give reasons for your answer. (L03)