Assuming that the trademark meets the criteria for


Question - An entity incurs the following costs in connection with the purchase of a trademark:

Purchase price of the trademark$80,000

Nonrefundable value added tax paid on the purchase of the trademark4,000

Training sales department staff on the use of the trademark2,000

Research expenditures incurred prior to the purchase of the trademark15,000

Legal fees to register the trademark8,000

Salaries of personnel who negotiated the purchase of the trademark during the period of negotiation 10,000

Assuming that the trademark meets the criteria for recognition as an intangible asset, at what amount should the trademark be initially measured?

$84,000

$92,000

$104,000

$119,000

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Accounting Basics: Assuming that the trademark meets the criteria for
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