Reference no: EM132855730
Question - On January 1, 2012, Epsi Company developed a trademark to distinguish its products from those of its competitors. Through advertising and other means, the company is seeking to establish significant product identification to increase future sales. The similarity between the trademark costs and other intangible and operating costs has caused some confusion over proper accounting. The following items are being treated as part of the cost of the trademark:
Marketing research to study consumer tastes P400,000
Design costs of trademark 1,500,000
Legal fees of registering trademark 150,000
Advertising to establish recognition of trademark 200,000
Registration fee with IPO 50,000
Through renewals, the trademark is expected to have an unlimited life. In Epsi's December 31, 2012 statement of financial position, what amount should be reported as trademark?
a. P1,700,000
b. P1,530,000
c. P2,300,000
d. P1,900,000
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