The following is a list of items that might or might not be classified as intangible assets and goodwill:
1. Goodwill recorded in the purchase of a business
2. Equipment acquired using a finance lease
3. Cost of purchasing a franchise
4. Cost of purchasing a patent
5. Legal costs incurred to successfully defend a patent (see item 4)
6. Goodwill generated internally
7. Aircraft acquired using an operating lease
8. Cost of purchasing a trademark
9. Legal costs incurred to unsuccessfully defend a trademark (see item 8)
10. Research costs incurred to identify a cure for cancer
Instructions
(a) Identify which of the above items would be reported as intangible assets and goodwill on the statement of financial position.
(b) For those items in part (a) reported as intangible assets and goodwill, identify the specific account title that would be used to record the asset.
(c) For those items in part (a) reported as intangible assets and goodwill, identify which assets would likely be amortized.
(d) 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, state so.