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31-32 Use the following to answer questions 31 - 32 Last year SAM, Inc., had the following expenditures related to developing its trademark: General advertising
31-32
Use the following to answer questions 31 - 32 Last year SAM, Inc., had the following expenditures related to developing its trademark: General advertising costs $224,000 Advertising specifically focused on trademark 45,600 Legal fees to register trademark 1,000 Legal fees for successful defense of new trademark 75,000 Total $345.600 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 and, therefore, should be capitalized. 31. Which of the above costs should NOT be capitalized? 32. $ What is the total cost that should be capitalized to the trademark account? Chapter 7 Page 7-1 Step by Step Solution
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