From page 7-2 of the VLN, intangible assets are long term assets and would NOT include:Group of answer choicesA. GoodwillB. Natural gasC. PatentsD. Copyrights PracticeJAX Inc., incurred the following costs associated with thepurchase of a piece of land that it will use to re-build an officebuilding:Purchase price for the landSale of salvage parts already on landDemolition of the old buildingGroundbreaking ceremony (food & supplies)$300,00012,00016,0002,000Title insurance4,000Real estate agent commissions3,000Back taxes on property2,000Property taxes due later in the year3,000Architect fees for blueprints for new building 15,000Interest incurred for the first year9,000What amount should be recorded to the Land account? SPracticeKEV, Inc., purchased a piece of equipment by paying $52,000cash with a fair value of $54,000. KEV also incurred shippingcosts of $600 to get the equipment back to its factory, $300 toget the equipment calibrated and installed, and $1,200 for a one-year maintenance contract.For what amount should KEV record the equipment? $Natural Resources-Oil, natural gas, timber, etc.INTANGIBLE ASSETS (Patents, Copyrights, Trademarks,Franchises, Goodwill)Acquisition cost-purchase price plus all costs (legal and filingfees) to get the asset ready for use. Additional legal fees add tocost.Internally developed-most costs are expensed as incurred(R&D, advertising) and not included in the asset account. Legalfees related to the intangible asset add to the cost of the asset.Goodwill-Recognized (recorded) when a company purchases anotherbusiness for more than the fair value of the net assets (assetsliabilities) acquired.-Indefinite life

Intangible Asset: An intangible asset is a distinguishable non-monetary item that does not have a…

Answered: intangible assets are long term assets…

intangible assets are long term assets and would NOT include: Group of answer choices A. Goodwill B. Natural gas C. Patents D. Copyrights

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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