courses/494558/quizzes/827562/take Use the following to answer questions 31 - 32

Question

courses/494558/quizzes/827562/take Use the following to answer questions 31 - 32 Last year SAM, Inc.,.had the following expenditures related to developing its rademarke General advertising costs Advertising specifically focused on trademarlk Legal fees to register trademark Legal fees for successful defense of new trademark Total $224,000 45,600 550 75,000 $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. uestion 24 0.47 pts

Explanation / Answer

24) The above costs should not be capitalized:

1) General advertising costs

2) Advertising specifically focused on trademark development.

25) Total cost to be capitalized = 550 + 75000 = $75,500

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