someone show me the steps on how the reached the answers for A & B thanks in adv

Question

someone show me the steps on how the reached the answers for A & B thanks in advance

Presented below is a list of items that could be included in the intangible assets section of the balance sheet. Investment in a subsidiary company. Timberland. Cost of engineering activity required to advance the design of a product to the manufacturing stage. Lease prepayment (6 months' rent paid in advance). Cost of equipment obtained. Cost of searching for applications of new research findings. Costs incurred in the formation of a corporation. Operating losses incurred in the start-up of a business. Training costs incurred in start-up of new operation. Purchase cost of a franchise. Goodwill generated internally. Cost of testing in search for product alternatives. Goodwill acquired in the purchase of a business. Cost of developing a patent. Cost of purchasing a patent from an inventor. Legal costs incurred in securing a patent. Unrecovered costs of a successful legal suit to protect the patent. Cost of conceptual formulation of possible product alternatives. Cost of purchas

Explanation / Answer

Items Intangible Asset If Not recording in other Financial statement       1 Investment in a subsidiary no Asset portion in BS       2 Timberland no Asset portion in BS       3 Cost of engg activity for advance design of product at mfg stage no no       4 Lease Prepayment no Current Asset BS       5 Cost of equipment acquired no Fixed Asset BS       6 cost of searching for applications of new research finding no Expensed in Income Statement       7 Costs incurred in the formation of corporation no start up cost expensed in Insome statement       8 Operating losses in start up no in Misc Expenditure carried fwd in Stakeholders equity in BS       9 Training cost in start up of new org no Expensed in Income Statement     10 Purchase cost of franchasiee Yes     11 Goodwill generated internally No Not recognized     12 Cost of testing in search of product alternative no Expensed in Income Statement     13 Goodwill acquired in purchase of a business Yes     14 Cost of developing a patent No Expensed in Income Statement     15 Cost of purchasing a patent from an inventor Yes     16 Leagal costs incurred in securing a patent Yes     17 Unrecovered cost of a successful defend of a patent Yes     18 Cost of cocenptual formaulation of possible product alternative No Expensed in Income Statement     19 Cost of purchasing a Copyright Yes     20 R & D Cost No Expensed in Income Statement     21 Long term receivables No Asset portion in BS     22 Cost of developing a trademark No Expensed in Income Statement     23 Cost of purchasing a trademark Yes

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