Reference no: EM131588719
Question - 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 trademark4,000
Training sales department staff on the use of the trademark2,000
Research expenditures incurred prior to the purchase of the trademark15,000
Legal fees to register the trademark8,000
Salaries of personnel who negotiated the 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 measured?
$84,000
$92,000
$104,000
$119,000