A company had the following expenditures related to developing its trademark. 
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the trademark. Management contends that all of the costs increase the value of the trademark; therefore, all the costs should be capitalized.
Required:
1. Which of the above costs should the company capitalize to the Trademark account in the balance sheet?
2. Which of the above costs should the company report as expense in the income statement?
Definitions:
Stomach Enzyme
Biological catalysts secreted by the stomach to aid in the digestion and breakdown of food.
Parallel Processing
The ability of the brain to simultaneously process incoming stimuli of differing quality.
Sequential Order
A method of organization where events, actions, or processes follow in a logical order or sequence.
Chronic Sleep Deprivation
A long-term lack of adequate sleep, leading to significant negative health outcomes, including cognitive impairment, mood disorders, and physical ailments.
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