In early January 2013, Outkast Corporation applied for a trade name, incurring legal costs of $23,280. In January 2014, Outkast incurred $8,760 of legal fees in a successful defense of its trade name.

A-Compute 2013 amortization, 12/31/13 book value, 2014 amortization, and 12/31/14 book value if the company amortizes the trade name over 10 years.

B- Compute the 2014 amortization and the 12/31/14 book value, assuming that at the beginning of 2014, Outkast determines that the trade name will provide no future benefits beyond December 31, 2017.

C- Ignoring the response for part (b), compute the 2015 amortization and the 12/31/15 book value, assuming that at the beginning of 2015, based on new market research, Outkast determines that the fair value of the trade name is $15,208. Estimated total future cash flows from the trade name is $16,218 on January 3, 2015

2013 amortization 2328 12/31/13 book value 20952 2014 amortization 1232 12/31/14 book value 28480