Langrova SpA has the following amounts reported in its general ledger at December 31, 2019. Organization costs...............................................................................24,000

Question:

Langrova SpA has the following amounts reported in its general ledger at December 31, 2019.

Organization costs...............................................................................€24,000

Trademarks.........................................................................................20,000

Bonds payable.....................................................................................35,000

Deposits with advertising agency for ads to promote goodwill of company.............10,000

Excess of cost over fair value of net identifiable assets of acquired subsidiary..........75,000

Cost of equipment acquired for research and development projects; the equipment has an alternative future use.....................................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

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, 2019. 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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