Langrova Inc. has the following amounts included in its general ledger at December 31, 2010. Organization costs $24,000 Trademarks 20,000 Discount on bonds payable 35,000 Deposits with advertisin

Langrova Inc. has the following amounts included in

its general ledger at December 31, 2010.

Organization costs $24,000

Trademarks 20,000

Discount on 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 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 balance sheet at December 31, 2010. Equipment has alternative future use.

(b) If an item is not to be included in intangible assets, explain its proper treatment for reporting

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