13. Pontos Corporation buys 80% of the voting stock of Springfield Company on...
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| 13. | Pontos Corporation buys 80% of the voting stock of Springfield Company on January 1, 2017. At the date of acquisition, it is determined that Springfield has a secret recipe for its famous cookies, not currently reported on its balance sheet, that has a fair value of $20,000. The secret cookie recipe meets ASC Topic 805 requirements for capitalization as an intangible asset, and has an estimated life of 5 years, straight-line.
On the consolidated balance sheet at December 31, 2020, at what value is the secret cookie recipe reported? | |
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| A) | $ 3,200 |
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| B) | $ 8,000 |
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| C) | $ 4,000 |
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| D) | $16,000 |
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