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 trademark….........................................…...4,000

Training sales department staff on the use of the trademark..................................………………………...2,000

Research expenditures incurred prior to the purchase of the trademark…………………………………...15,000

Legal fees to register the trademark…………………………………………………………............................8,000

Salaries of personnel who negotiated 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 measure?

a. $84,000.

b. $92,000.

c. $104,000.

d. $119,000.

Answer rating: 100% (QA)

B 800... View the full answer