Exercise 123 Joni Kingbird Inc has the following amounts rep

Exercise 12-3 Joni Kingbird Inc. has the following amounts reported in its general ledger at the end of the current year Organization costs Trademarks Discount on bonds payable Deposits with advertising agency for ads to promote goodwill of company Excess of cost over fair value of net identifiable assets of acquired subsidiary Cost of equipment acquired for research and development projects; the $22,000 12,100 35,000 10,000 75,000 equipment has an alternative future use Costs of developing a secret formula for a product that is expected to 85,000 be marketed for at least 20 years 79,000 On the basis of this information, compute the total amount to be reported by Kingbird for intangible assets on its balance sheet at year-end Total amount reported for intangible assets

Solution

Total amount reported for intangible assets = Trademarks+Excess of cost over fair value of net identifiable assets of acquired subsidiary = 12100+75000= $87100