Wilson Manufacturing incurred the following costs during the year: Costs Incurred For routine maintenance of production equipment $14,640 For purchase of trademark from another company 48,000 For monthly insurance premium on factory 1,500 For license tab renewals on company vehicles 1,050 For remodeling office building to create two conference rooms 103,680 For sales tax on furniture purchased for new conference room 4,200 

a. Compute the total of the above amounts that should be capitalized.  

b. Compute the total of the above amounts that should be expensed.

Answer rating: 100% (QA)

a Costs that should be capitalized are those that are incurred to acquire or improve lon... View the full answer