In March of 2014, Marian Corp

question 88

Essay

In March of 2014, 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, 2016, 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 2014? For the year 2015? For the year 2016?
b.What is the accounting rationale for the amounts recorded in each year?

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Definitions:

National Union

A labor union organization that represents the interests of workers across an entire country, often consisting of many local branches or sectors.

Democratic Methods

Approaches or processes that emphasize participation, inclusiveness, and equal opportunities for decision-making.

Autocratic Methods

Management styles characterized by individual control over all decisions and little input from group members, often leading to a centralized decision-making process.

Paternalistic Methods

Management practices that involve overseeing workers in a fatherly manner, where decision-making is centralized and based on the assumption that employers know what is best for their employees.