AACA 1 CHAPTER 6 case 1

 1.      Investment in a subsidiary company 

• intangible asset

• expense

• other classification

 2.      Timberland 

• intangible asset

• expense

• other classification

 3.      Cost of engineering activity required to advance the design of a product to the manufacturing stage 

• intangible asset

• expense

• other classification

 4.      Lease prepayments (6 months’ rent paid in advance) 

• intangible asset

• expense

• other classification

 5.      Cost of equipment obtained under finance lease 

• intangible asset

• expense

• other classification

 6.      Internally generated publishing title  

• intangible asset

• expense

• other classification

 7.      Costs incurred in the formation of the corporation 

• intangible asset

• expense

• other classification

 8.      Operating losses incurred in the start-up of the business 

• intangible asset

• expense

• other classification

 9.      Training costs incurred in start-up operations 

• intangible asset

• expense

• other classification

 10.  Purchase of a franchise 

• intangible asset

• expense

• other classification