Reference no: EM132953506
Question - The following costs are generally incurred by Harold Company a newly established entity:
Pre-opening cost of a business facility- 250,000
Purchased recipes and secret formulas- 150,000
Training, customer loyalty, and market share- 140,000
Licensing, royalty, and standstill agreement- 300,000
Operating and broadcast rights- 112,000
Goodwill arising from business combination- 500,000
A license to manufacture a drug by means of a government grant- 150,000
Cost of courses taken by management in quality engineering management- 450,000
A television advertisement that will stimulate sales in the industry- 100,000
Investment in associate- 800,000
6-month lease payment in advance- 300,000
Cost of equipment acquired through a finance lease- 100,500
Internally developed customer list- 120,500
Initial franchise fees paid- 175,000
Required - How much from the items above are expensed?
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