Intangibles on balance sheet (1 Viewer)

[seremify007]

My friend has a question re: Intangibles.

The question from her workbook is as follows;

Lounge Lizards P/L is a manufacturer of lounge suites and sofa beds. The directors have prepared the following balance sheet.

Balance sheet as at 30/6/00

Assets
Inventories 300k
Accounts Receivable 870k
Plant 100k
Intangibles 300k

Liabilities
Accounts Payable 50k
Overdraft 20k
Long term loan 75k

Owners Equity
Capital 1,000k (i.e. 1m)
Retained Profits 500k

Other information: Industry norm gearing 60%

The question is: "Explain why intangibles are a $300,000 asset for Louge Lizards"

I know how to answer this from a 3rd year accounting perspective but considering it's a 4-line question with 1 mark, I'm thinking there must be a simpler answer for HSC students.

Thanks.