On January 10, 2007 the Hughes Company applied for a tradename. Legal costs associated with the application

Question:

On January 10, 2007 the Hughes Company applied for a tradename. Legal costs associated with the application were $20,000. In January 2008 the company incurred $8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2007 and 2008.

Required
Compute the ending carrying value of the tradename for 2007 and 2008. Should the company amortize the tradename?