Reference no: EM132676373

Problem 1: Merriam Company commenced operations in the current year. A number of expenditures were made during the current year that were debited to one account intangible assets. (refer to data below) What total amount should be reported as intangible assets?

state incorporation fees and legal costs related to organizing an organization 100,000
Fire insurance 60,000
Purchase of Copyright 200,000
Legal fees for filing a patent on a new product resulting from an R&D Project 50,000
Legal fees for successful defense of the patent developed from the project 10,000
Entered into a 10-year franchise agreement with a franchisor 500,000
Advertising Cost 150,000
Purchase of all of the outstanding ordinary shares of an acquiree. On that date of purchase, the acquiree had total assets of 6,000,000 at fair value and total liabilities of 2,200,000 fair value. 5,000,000