Question

Given the following account balances at year end, how much are total intangible assets on the balance sheet of Alisha Enterprises?
Sales revenue, $45,000,000;
Cash, $1,500,000;
Copyrights, $500,000;
Accounts receivable, $4,000,000;
Land, $15,000,000;
Equipment, $25,000,000;
Trademarks, $1,000,000; and Goodwill, $4,500,000.
The company also paid $2,000,000 for research & development during the current year.
a. $11,500,000
b. $7,500,000
c. $5,500,000
d. $9,500,000

Answer 1

Answer:$6000000

Explanation:

Given

Trademarks  1,000,000

Goodwill       4,500,000

Copyrights       500,000

Total              6,000,000

Total intangible assets is $6,000,000

Intangible assets are the assets which cannot be touched or seen. In the above example the copyrights, trademarks and goodwill are intangible assets. While sales revenue, cash, land, equipment, accounts receivables are tangible assets. The amount paid for research and development is also tangible assets in the future when they turn into patents, copyrights or trademark they become as intangible assets.