oni Splish Brothers Inc. has the following amounts reported in its general ledge

Question

oni Splish Brothers Inc. has the following amounts reported in its general ledger at the end of the current year.

(a)

On the basis of this information, compute the total amount to be reported by Splish Brothers for intangible assets on its balance sheet at year-end.

Organization costs $22,700 Trademarks 13,500 Discount on bonds payable 35,700 Deposits with advertising agency for ads to promote goodwill of company 10,700 Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,700 Cost of equipment acquired for research and development projects; the    equipment has an alternative future use 85,700 Costs of developing a secret formula for a product that is expected to    be marketed for at least 20 years 80,400

Explanation / Answer

Splish Brothers Inc

Computation of total amount to be reported by the company for intangible assets on its balance sheet at year-end:

Trademarks                             $13,500

Goodwill                                 $75,700

Total amount reported for intangible assets $89,200

Explanation for other cost items –

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