Question

The general ledger of Vance Corporation as of December 31, 2020, includes the following accounts: Copyrights $30,000 Deposits with advertising agency for future services $27,000 Discount on bonds payable $70,000 Excess of cost over fair value of identifiable net assets of acquired subsidiary $480,000 Trademarks $90,000 In the preparation of Vance's balance sheet as of December 31, 2020, what should be reported as total intangible assets?

Answer 1

Answer:

The amount of $600,000 would be reported as the intangible assets

Explanation:

Intangible assets are those assets which are not physical in nature and its example are goodwill, copyrights, patents and copyrights.

The amount which is to be reported as the intangible assets is as:

Intangible assets = Copyrights + Trademarks + Acquired subsidiary

where

Copyrights amounts to $30,000

Trademarks amounts to $90,000

Acquired subsidiary amounts to $480,000

Putting the values above:

Intangible assets = $30,000 + $90,000 + $480,000

Intangible assets = $600,000