Berrie Inc. has the following amounts included in its general ledger at December 31, 2014:
Organization costs ..................... $34,000
Purchased trademarks ................... 17,500
Discount on bonds payable ................. 23,000
Development phase activities
(meet all six development phase criteria) ............. 29,000
Deposits with advertising agency for ads
to promote goodwill of company .............. 8,000
Excess of cost over fair value of
identifiable net assets of acquired subsidiary .......... 81,000
Cost of equipment acquired for research and development
projects the equipment has an alternative future use ....... 125,000
Costs of researching a secret formula for a product
that is expected to be marketed for at least 20 years ........ 75,000
Payment for a favourable lease; lease term of 10 years ...... 15,000
Instructions
(a) Based on the information, calculate the total amount for Berrie to report as intangible assets on its statement of financial position at December 3!, 2014.
(b) If an item should not be included in intangible assets, explain the proper treatment for reporting it.