On January 11, 2019, Hughes Company applied for a trade name. Legal costs associated with the application were $20,000. In January 2020, the company incurred $8,000 of legal fees in a successful defense of its trade name. The trade name was not impaired in 2019 and 2020.

Required:
1. Compute the ending carrying value of the trade name for 2019 and 2020.
2. Next Level Should the company amortize the trade name? Under what circumstances would the trade name be amortized?