Suddenly Salad had the following expenditures related to developing its trademark.

General advertising costs

$

330,000

Advertising specifically focused on trademark development

107,000

Legal fees to register trademark

53,000

Registration and design fees for the trademark

34,800

Legal fees for successful defense of the new trademark

39,200

Total

$

564,000

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

a.	Which of the above costs should Suddenly Salad capitalize to the Trademark account in the balance sheet? (Omit the "$" sign in your response.

Total costs capitalized

b.	Which of the above costs should Suddenly Salad report as expense in the income statement? (Omit the "$" sign in your response.

Total costs expensed