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Question: Trademarks
In early January 2017, Crawford Corporation applied for and received approval for a trade name, incurring legal costs of $50,400. In January 2018, Crawford incurred $22,050 of legal fees in a successful defence of its trade name.
Required: (round all answers to 0 decimal place)
a) Calculate amortization for 2017; carrying amount at December 31, 2017; amortization for 2018; and carrying amount at December 31, 2018, if the company amortizes the trade name over its 16-year legal life.
b) Calculate amortization for 2017; carrying amount at December 31, 2017; amortization for 2018; and carrying amount at December 31, 2018, if the company amortizes the trade name over a useful life of 5 years.
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