Reference no: EM132673904

Problem 1: Merriam Ltd. commenced operations in the current year. A number of expenditures were made during the current year that were debited to one account intangible assets. (refer to data below) What total amount should be reported as intangible assets?

State incorporation fees and legal costs related to organizing the corporation $100
Fire insurance premium for three-year period $60
Purchase of copyright $200
Legal fees for filing a patent on new product resulting from a Research and Development project $50
Legal fees for success defense of the patent developed from the project $10
Entered into a 10-year franchise agreement with a franchisor $500
Advertising Cost $150
Purchase of all the outstanding ordinary shares of an acquiree. On the date of purchase, the acquiree  had total assets of $6,000 at fair value and total liabilities of $2,200 at fair value $5,000