In March of 2016, Marian Corp

question 27

Essay

In March of 2016, Marian Corp. applied for a trade name. Legal costs associated with the application were $25,000.
At the time of filing the application, the company projected extra annual income to be generated through having the trade name to be $100,000. On Feb. 5, 2018, the company incurred $20,000 in an unsuccessful defense of the trade name.
Required:
a. What is the amount of income or expense associated with the trade name for the year
2016? For the year 2017? For the year 2018?
b. What is the accounting rationale for the amounts recorded in each year?

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Definitions:

Relevant Elements

Components or aspects that have significant importance or bearing on the matter at hand.

Attitude-Centered

Focusing on the importance of individuals' attitudes in shaping behaviors and outcomes.

Role-Centered

An approach or perspective focusing on the functions and responsibilities assigned to individuals within a structure or system.

Prior Experience

The knowledge or skills a person has gained before the current point or role, often influencing their capacity to learn new tasks or adapt to new situations.