AC 302 CHAPTER 12 QUESTION 3

AC 302 CHAPTER 12 QUESTION 3
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E12-3 (Classification Issues—Intangible Asset) Langrova Inc. has the following amounts included in its general ledger at December 31, 2012.						
						
	Organization costs					$24,000 
	Trademarks					$20,000 
	Discount on bonds payable					$35,000 
	"Deposits with advertising agency for ads to promote goodwill
     of company"					$10,000 
						
	"Excess of cost over fair value of net identifiable assets of acquired
    subsidiary"					$75,000 
						
	"Cost of equipment acquired for research and development projects;
    the equipment has an alternative future use"					$90,000 
						
	"Costs of developing a secret formula for a product that is expected
    to be marketed for at least 20 years"					$70,000 
						
						
Instructions:						
"(a) On the basis of the information above, compute the total amount to be reported by Langrova for
     intangible assets on its balance sheet at December 31, 2012. Equipment has alternative future
     use."						
						
						
						
	Text Title				Amount	
	Text Title				Amount	
						
	Text Title				Formula	
						
"(b) If an item is not to be included in intangible assets, explain its proper treatment for reporting
     purposes."						
						
						
Enter text answer as appropriate here.						
						
						
						
						
Enter text answer as appropriate here.						
						
						
						
						
Enter text answer as appropriate here.						
						
						
						
						
Enter text answer as appropriate here.