Liang Inc. is a new concept on-line store that has proven to be very popular in the past year. Mr Liang and her team worked very hard in the past year in developing the brand and she indicated that she spent approximately $5,000,000 in a large marketing and customer service initiative. In an article published in December 2016, the business journal has indicated that their brand name is estimated to be worth $12,000,000 based on an analysis they performed. On their balance sheet for December 31, 2016, Liang Inc should record: a) An intangible asset worth $5,000,000 B b) An intangible asset worth $7,000,000 c) An intangible asset worth $12,000,000 d) No intangible asset should be recorded at December 31, 2016.
Liang Inc. is a new concept on-line store that has proven to be very popular in the past year. Mr Liang and her team worked very hard in the past year in developing the brand and she indicated that she spent approximately $5,000,000 in a large marketing and customer service initiative. In an article published in December 2016, the business journal has indicated that their brand name is estimated to be worth $12,000,000 based on an analysis they performed. On their balance sheet for December 31, 2016, Liang Inc should record: a) An intangible asset worth $5,000,000 B b) An intangible asset worth $7,000,000 c) An intangible asset worth $12,000,000 d) No intangible asset should be recorded at December 31, 2016.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter10: Forecasting Financial Statement
Section: Chapter Questions
Problem 9PC: The Home Depot is a leading specialty retailer of hardware and home improvement products and is the...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:
9781133935940
Author:
Ulric J. Gelinas
Publisher:
CENGAGE L
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:
9781133935940
Author:
Ulric J. Gelinas
Publisher:
CENGAGE L
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning