E$12\mathrm{.}3($LO $1,2)$ Excel $($Classification Issues$-$Intangible Assets$)$ Joni Hyde Inc. has the following amounts reported in its general ledger at the end of the current year.

Organization costs

Trademarks

Discount on 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

Costs of developing a secret formula for a product that is expected to be marketed for at least $20$ years

$$24,000$

$15,000$

$35,000$

$10,000$

$75,000$

$90,000$

$80,000$

Instructions

a$.$ On the basis of the information above, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at year$-$end.

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