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

General advertising costs $ $320,000$

Advertising specifically focused on the trademark $100,000$

Legal fees to register trademark $52,900$

Registration and design fees for the trademark $37,000$

Legal fees for successful defense of the new trademark $37,700$

Total $ $547,600$

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?