Use the following to answer questions 31 32

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

General advertising costs $224,000

Advertising specifically focused on trademark 45,600

Legal fees to register trademark 550

Legal fees for successful defense of new trademark 75,000

Total $345,150 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 and, therefore, should be capitalized.

Question 24

31. Which of the above costs should NOT be capitalized? (select all that apply)

General advertising costs

Advertising specifically focused on trademark

Legal fees to register trademark

Legal fees for successful defense of new trademark

Question 25

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