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?

---

Definitions:

Traditional Store-based

Pertains to physical retail outlets or stores where customers can shop for and purchase goods in person.

Extreme-value Retailer

A type of retailer that sells products at prices significantly lower than those of competitors, often in a no-frills shopping environment.

Target Customer

The specific group of consumers identified as the intended recipient of a product or service, based on shared characteristics or needs.

Off-price Retailers

Retail stores that sell branded goods at lower prices than mainstream retail stores, often through the sale of surplus stock or from past seasons.