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Question - Classification Issues-Intangible Asset
Langrova Inc. has the following amounts included in its general ledger at December 31, 2010.
Organization costs
$28,092
Trademarks
19,641
Discount on bonds payable
34,593
Deposits with advertising agency for ads to promote goodwill of company
12,629
Excess of cost over fair value of net identifiable assets of acquired subsidiary
72,325
Cost of equipment acquired for research and development projects; the
equipment has an alternative future use
90,123
Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years
78,403
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, 2010. Equipment has alternative future use.
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