Joni Teal Mountain Inc. has the following amounts reported in its general ledger
ID: 2545407 • Letter: J
Question
Joni Teal Mountain Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization cost. $22,900
Trademark. 13,900
Discount on bonds payable. 35,900
Deposit with advertising agency for ads to promote
goodwill of company. 10,900
Excess of cost over fair value of net identifiable assets
of acquired subsidiary. 75,900
Cost of equipment acquired for research and development
projects; the equipment has an alternative future use. 85,900
Cost of developing a secret formula for a product that is
expected to be marketed for at least 20 years. 80,800
(a). On the basis of this information, compute the total amount to be reported by Teal Mountain for intangible assets on its balance sheet at year-end.
Total amount reported for intangible assets $______________
cstngts e ager at the ene 22.900 13.900 35.900 5 900 Cost of 85.900Explanation / Answer
Solution: Total amount reported for intangible assets $89,800
Working:
Trade marks + Excess of cost over fair value of net identifiable assets of acquired subsidiary
= 13900 + 75,900
= 89,800
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