The following is a list of items that could be included in the intangible assets section of the balance sheet.

(a) Indicate which items on the list below would generally be reported as intangible assets in the balance sheet.

1.Investment in a subsidiary company.

select between Intangible Asset and Not an Intangible Asset

 

2.Timberland.

select between Intangible Asset and Not an Intangible Asset

 

3.Cost of engineering activity required to advance the design of a product to the manufacturing stage.

select between Intangible Asset and Not an Intangible Asset

 

4.Lease prepayment (6 months' rent paid in advance).

select between Intangible Asset and Not an Intangible Asset

 

5.Cost of equipment obtained.

select between Intangible Asset and Not an Intangible Asset

 

6.Cost of searching for applications of new research findings.

select between Intangible Asset and Not an Intangible Asset

 

7.Costs incurred in the formation of a corporation.

select between Intangible Asset and Not an Intangible Asset

 

8.Operating losses incurred in the start-up of a business.

select between Intangible Asset and Not an Intangible Asset

 

9.Training costs incurred in start-up of new operation.

select between Intangible Asset and Not an Intangible Asset

 

10.Purchase cost of a franchise.

select between Intangible Asset and Not an Intangible Asset

 

11.Goodwill generated internally.

select between Intangible Asset and Not an Intangible Asset

 

12.Cost of testing in search for product alternatives.

select between Intangible Asset and Not an Intangible Asset

 

13.Goodwill acquired in the purchase of a business.

select between Intangible Asset and Not an Intangible Asset

 

14.Cost of developing a patent.

select between Intangible Asset and Not an Intangible Asset

 

15.Cost of purchasing a patent from an inventor.

select between Intangible Asset and Not an Intangible Asset

 

16.Legal costs incurred in securing a patent.

17.Unrecovered costs of a successful legal suit to protect the patent. 

select between Intangible Asset and Not an Intangible Asset

 

18.Cost of conceptual formulation of possible product alternatives.

select between Intangible Asset and Not an Intangible Asset

 

19.Cost of purchasing a copyright.

select between Intangible Asset and Not an Intangible Asset

 

20.Research and development costs.

select between Intangible Asset and Not an Intangible Asset

 

21.Long-term receivables.

select between Intangible Asset and Not an Intangible Asset

 

22.Cost of developing a trademark.

select between Intangible Asset and Not an Intangible Asset

 

23.Cost of purchasing a trademark

Answer rating: 100% (QA)

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