Question

Joni Metlock Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization costs $22,300
Trademarks 12,700
Discount on bonds payable 35,300
Deposits with advertising
agency for ads to promote
goodwill of company 10,300
Excess of cost over fair
value of net identifiable
assets of acquired subsidiary 75,300
Cost of equipment acquired for
research and development projects;
the equipment has an alternative future use 85,300
Costs of developing a secret formula for a
product that is expected to be marketed for
at least 20 years 79,600
On the basis of this information, compute the total amount to be reported by Metlock for intangible assets on its balance sheet at year-end.

Answer 1

Answer:

Joni Metlock Inc.

Computation of the total amount of Intangible Assets on the Balance Sheet at year-end:

Organization costs                          $22,300

Trademarks                                        12,700

Goodwill acquired                             75,300

Secret formula Development cost  79,600

Total amount of intangibles       $189,900

Explanation:

Data:

Organization costs $22,300

Trademarks 12,700

Discount on bonds payable 35,300

Deposits with advertising

agency for ads to promote

goodwill of company 10,300

Excess of cost over fair

value of net identifiable

assets of acquired subsidiary 75,300

Cost of equipment acquired for

research and development projects;

the equipment has an alternative future use 85,300

Costs of developing a secret formula for a

product that is expected to be marketed for

at least 20 years 79,600

b) Metlock's intangible assets are the non-physical assets like Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights.