In 1975, Riveria Company had acquired copyrights for $750,000 on several literary works from some obscure 18th century authors. These copyrights were fully amortized by 2015. In early 2015, a new anthropological discovery made these copyrights worth $2,500,000. As a result, Riveria should report which of the following in its financial statements for 2015?   a. $2,500,000 as an extraordinary item   b. cannot be recognized under U.S. GAAP in the financial statements   c. $2,500,000 as a holding gain   d. $750,000 as copyrights-based recovery of value limited to historical cost

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 15E
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In 1975, Riveria Company had acquired copyrights for $750,000 on several literary works from some obscure 18th century authors. These copyrights were fully amortized by 2015. In early 2015, a new anthropological discovery made these copyrights worth $2,500,000. As a result, Riveria should report which of the following in its financial statements for 2015?
  a.
$2,500,000 as an extraordinary item
  b.
cannot be recognized under U.S. GAAP in the financial statements
  c.
$2,500,000 as a holding gain
  d.
$750,000 as copyrights-based recovery of value limited to historical cost
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