Bowman Company reported assets totaling $870,000 as of December 31,2014.The following information relates to those assets:
(a)Tristan Labs,a rival company,recently offered to give a $100,000 signing bonus to the head of Bowman's fabrication department if she would leave Bowman and join Breakstone.She declined.Bowman has consequently recorded a long-term asset,"Employees Under Contract," for $100,000.
(b)Bowman purchased a patent from a small research firm for $75,000.Subsequent research has shown that the patented technology doesn't work as well as originally thought and the technology actually has no economic use.Bowman reports the patent at its amortized cost of $60,000.
(c)An independent appraiser recently set Bowman's market value at $500,000.This exceeded the book value of equity by $120,000.Accordingly,Bowman recorded Goodwill totaling $120,000.
(d)Near the end of the year,Bowman paid $30,000 for the exclusive right to market electronic equipment to be imported from abroad.Bowman reported this as a $30,000 "Intangible Asset."
(e)When Bowman started business three years ago,it was required to deposit $5,000 with the local electric utility.The deposit is refundable if Bowman cancels its electric service.Bowman earns no interest on the deposit.The deposit is recorded as an "Other Long-Term Asset."
After considering the items above,what should be the total of Bowman's reported assets?

Question

Quizplus · Accepted Answer

The Answer of Bowman Company reported assets totaling $870,000 as of December 31,2014.The following information relates to those assets:
(a)Tristan Labs,a rival company,recently offered to give a $100,000 signing bonus to the head of Bowman's fabrication department if she would leave Bowman and join Breakstone.She declined.Bowman has consequently recorded a long-term asset,"Employees Under Contract," for $100,000.
(b)Bowman purchased a patent from a small research firm for $75,000.Subsequent research has shown that the patented technology doesn't work as well as originally thought and the technology actually has no economic use.Bowman reports the patent at its amortized cost of $60,000.
(c)An independent appraiser recently set Bowman's market value at $500,000.This exceeded the book value of equity by $120,000.Accordingly,Bowman recorded Goodwill totaling $120,000.
(d)Near the end of the year,Bowman paid $30,000 for the exclusive right to market electronic equipment to be imported from abroad.Bowman reported this as a $30,000 "Intangible Asset."
(e)When Bowman started business three years ago,it was required to deposit $5,000 with the local electric utility.The deposit is refundable if Bowman cancels its electric service.Bowman earns no interest on the deposit.The deposit is recorded as an "Other Long-Term Asset."
After considering the items above,what should be the total of Bowman's reported assets?

Bowman Company Reported Assets Totaling $870,000 as of December 31,2014