A company had the following expenditures related to developing its trademark.

General advertising costs	$ 300,000
Advertising specifically focused on trademark development	120,000
Legal fees to register trademark	52,000
Registration fees for the trademark	38,000
Legal fees for successful defense of the new trademark	33,000
Total	$ 543,000

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.

Required:

1. Which of the above costs should the company capitalize to the Trademark account in the balance sheet?
2. Which of the above costs should the company report as expense in the income statement?

\begin{tabular}{|l|l|} \hline Total costs capitalized \\ \hline Total costs expensed & \\ \hline \end{tabular}