Consider the following items:
a. Lottery' Company has a mailing list of people who have an established tendency to buy lottery tickets through the mail. It sold an exclusive copy of this mailing list for $500,000 to a charity. The charity can use the list for four years only. Lottery Company would like to set up a $500,000 asset for its copy of the list.
b. The charity noted above would like to set up the mailing list as an asset for $500,000. It plans to hold lotteries annually in the future.
c. A hockey team signed a three-year contract for a sensational new hockey player. The contract includes a $9,000,000 signing bonus.
d. A company acquired another firm that has several promising technologies it is developing. In putting the bid together on how much to pay for this company, a value of $10,000,000 was assigned to these in-process technologies.
Required:
For each case above, decide whether an intangible asset arose from the described case and how it might be valued. Please justify your recommendation.