Langrova Inc. has the following amounts reported in its general ledger at December 31, 2015.

Instructions

(a) On the basis of the information above, compute the total amount to be reported by Langrova for intangible assets on its statement of financial position at December 31, 2015. As noted, the equipment has alternative future use.

(b) If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.

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Organization costs Trademarks 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 equipment has an alternative future use 24,000 20,000 35,000 10,000 75,000 90,000 Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years (all research phase) 70,000