(Solution) - Williams Inc has the following amounts included in its general -(2025 Original AI-Free Solution)

Paper Details

Williams Inc. has the following amounts included in its general ledger at the end of the current year.
Organization costs .................... $120,000
Trademarks ......................... 150,000
Discount on bonds payable .................. 45,000
Deposits with advertising agency for ads to promote
goodwill of company .................. 25,000
Excess of cost over fair value of net identifiable assets
of acquired subsidiary ................... 750,000
Cost of equipment acquired for research and development projects;
the equipment has an alternative future use .......... 300,000
Costs of developing a secret formula for a product that
is expected to be marketed for at least 20 years ........ 800,000

Instructions
(a) On the basis of the information above, compute the total amount to be reported by Williams for intangible assets on its balance sheet at year-end. Equipment has alternative future use.
(b) If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.