Answer Happy

Suddenly Salad had the following expenditures related to developing its trademark, General advertising costs Advertisine specifically focused on tradenark development Legal fees to register trademark Registration and design fees for the trademark Legal fees for successful defense of the new trademark Total $270,000 116,000 57,600 36,400 38,000 $518,000 During your year-end review of the accounts related to Intangibles, you discover that the company has capitalized all the above as costs of the trademark Management contends that all of the costs increase the value of the trademark; therefore, all the costs should be capitalized 1. Which of the above costs should the company capitalize to the Trademark account in the balance sheet? Total costs capitalized 2. Which of the above costs should the company report as expense in the income statement? Total costs expensed