Question: --54 On January 10, 2007, the Hughes Company applied for a trade name. Legal costs associated with the application were $20,000. In January 2008 the company incurred $8,000 of legal fees in a successful defense of its trade name. The trade name was not impaired in 2007 and 2008. Required: Compute the ending carrying value of the trade name for 2007 and 2008. Should the company amortize the trade name?
Question: --54 On January 10, 2007, the Hughes Company applied for a trade name. Legal costs associated with the application were $20,000. In January 2008 the company incurred $8,000 of legal fees in a successful defense of its trade name. The trade name was not impaired in 2007 and 2008. Required: Compute the ending carrying value of the trade name for 2007 and 2008. Should the company amortize the trade name?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question: --54
On January 10, 2007, the Hughes Company applied for a trade name.
Legal costs associated with the application were $20,000. In January
2008 the company incurred $8,000 of legal fees in a successful defense
of its trade name. The trade name was not impaired in 2007 and 2008.
Required:
Compute the ending carrying value of the trade name for 2007 and
2008. Should the company amortize the trade name?
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