Use the following to answer questions 31 32

Last year T, Inc., had the following expenditures related to developing its trademark:

General advertising costs	$224,000
Advertising specifically focused on trademark	45,500
Legal fees to register trademark	600
Legal fees for successful defense of new trademark	75,000
Total	$344,600

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 the costs increase the value of the trademark and, therefore, should be capitalized.

31. Which of the above costs should NOT be capitalized?

32. $___________ What is the total cost that should be capitalized to the trademark account?