Flounder, Inc. paid a graphic design firm $35,000 on June 30, 2005, to design its trademark....

 

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Flounder, Inc. paid a graphic design firm $35,000 on June 30, 2005, to design its trademark. Flounder's in-house attorney registered the trademark on July 1, 2005. Registration fees total $1,500. The company intended to renew the trademark indefinitely. The company's attorney renewed the trademark for another 10 years on July 1, 2015. Registration fees were $2,000. The straight-line method is used by Flounder to amortize intangibles. On December 31, 2019, the company decided a more updated trademark was needed. Flounder intends to go back to the graphic design firm in 2020 and expects to roll out the new trademark beginning July 1, 2022. What is the carrying cost of the trademark as of December 31, 2019? What will amortization expense be in 2020? O $715; $37,795 O $38,500; $1,674 O $3,500; $3,500 O $38,500; $15,400 O $51,540; $22,050 O $3,500; $35,000 Flounder, Inc. paid a graphic design firm $35,000 on June 30, 2005, to design its trademark. Flounder's in-house attorney registered the trademark on July 1, 2005. Registration fees total $1,500. The company intended to renew the trademark indefinitely. The company's attorney renewed the trademark for another 10 years on July 1, 2015. Registration fees were $2,000. The straight-line method is used by Flounder to amortize intangibles. On December 31, 2019, the company decided a more updated trademark was needed. Flounder intends to go back to the graphic design firm in 2020 and expects to roll out the new trademark beginning July 1, 2022. What is the carrying cost of the trademark as of December 31, 2019? What will amortization expense be in 2020? O $715; $37,795 O $38,500; $1,674 O $3,500; $3,500 O $38,500; $15,400 O $51,540; $22,050 O $3,500; $35,000

Answer rating: 100% (QA)

As per IAS 38 an intangible asset with indefinite usefu... View the full answer