ABC inc. developed a trademark to distinguish its product from those of its competitors throug arvertising and other means, the company is sending to establish significant product identification to increase future sales. The similarity between the trademark costs and other following items are being treated as part if the cost of trademark.

Marketing research to study consumer tastes 400,000

Design costs of trademark 1,500,000

Legal Fees if registering the trademark - 150,000

Advertising to establish recognition of trademark - 200,000

Registration fee with patent office

Through renewals, the trademark is expected to have an unlimited life, the cost to be capitalized as trademark should be: *