StopNGO Spin Co. recently incurred these expenditures while developing its trademark. General advertising costs Advertising specifically focused on trademark development Legal fees to register trademark Registration and design fees for the trademark Legal fees for successful defense of the new trademark Total $ 250,000 104,000 51,900 32,500 33,300 $471,700 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. 1. Which of the above costs should the company capitalize to that "Trademark" account in the balance sheet? Total costs capitalized 2. Which of the above costs should the company report as expense in the income statement? Total costs expensed