What amount should be debited to the trademark account on these general accounting question? Crestfallen Enterprises acquired a trademark on June 15,2020. Crestfallen paid cash of $120,000 to the seller. Legalfees of $3,500 were paid related to the acquisition. Whatamount should be debited to the trademark account?a. $123,500b. $120,000c. $3,500d. $116,500

Step 1: Define Trademark AccountThe trademark account includes the costs associated with acquiring…

Answered: Crestfallen Enterprises acquired a…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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Crestfallen Enterprises acquired a trademark on June 15, 2020. Crestfallen paid cash of $120,000 to the seller. Legal fees of $3,500 were paid related to the acquisition. What amount should be debited to the trademark account? a. $123,500 b. $120,000 c. $3,500 d. $116,500