E12-1 - E12-1 Correct. Classification Issues-Intangibles...

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E12-1 Correct. Classification Issues-Intangibles Presented below is a list of items that could be included in the intangible assets section of the balance sheet. For each of the items below, enter Intangible asset if the item is generally reported as intangible assets in the balance sheet. Otherwise indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements. 1. Investment in a subsidiary company. Long-term investments in the balance sheet 2. Timberland. Property, plant and equipment in the balance sheet 3. Cost of engineering activity required to advance the design of a product to the manufacturing stage. Research and development expense in the income statement 4. Lease prepayment (6 months' rent paid in advance). Current asset (prepaid rent) in the balance sheet 5. Cost of equipment obtained. Property, plant and equipment in the balance sheet 6. Cost of searching for applications of new
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E12-1 - E12-1 Correct. Classification Issues-Intangibles...

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