The general ledger of Vance Corporation as of December 31, 2007, includes the following accounts: $$\begin{array} { l r }
\text { Copyrights } & \$ 20,000 \
\text { Deposits with advertising agency (will be used to promote goodwill) } & 27,000 \
\text { Discount on bonds payable } & 67,500 \
\text { Excess of cost over fair value of identifiable net assets of } & \
\quad \text { Acquired subsidiary } & 390,000 \
\text { Trademarks } & 90,000
\end{array}$$ In the preparation of Vance's balance sheet as of December 31, 2007, what should be reported as total intangible assets?
A)$594,500.
B)$527,000.
C)$500,000.
D)$460,000.

Question

The general ledger of Vance Corporation as of December 31, 2007, includes the following accounts: $$\begin{array} { l r } 
\text { Copyrights } & \$ 20,000 \
\text { Deposits with advertising agency (will be used to promote goodwill) } & 27,000 \
\text { Discount on bonds payable } & 67,500 \
\text { Excess of cost over fair value of identifiable net assets of } & \
\quad \text { Acquired subsidiary } & 390,000 \
\text { Trademarks } & 90,000
\end{array}$$ In the preparation of Vance's balance sheet as of December 31, 2007, what should be reported as total intangible assets?
A)$594,500.
B)$527,000.
C)$500,000.
D)$460,000.

Quizplus · Accepted Answer

Intangible assets include copyrights, goodwill (excess of cost over fair value of identifiable net assets), and trademarks. Therefore, the total is $20,000 (Copyrights) + $390,000 (Goodwill) + $90,000 (Trademarks) = $500,000.

The General Ledger of Vance Corporation as of December 31