On January 11, 2010, the Hughes Company applied for a tradename. Legal costs associated with the application were $20,000. In January 2011, the company incurred $8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2010 and 2011.

Required
Compute the ending carrying value of the tradename for 2010 and 2011. Should the company amortize the tradename?