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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?


Definitions:

Medical Model

A framework for understanding diseases and disorders by identifying biological causes, offering diagnoses, and framing treatment within a medical context.

Mental Disorders

Mental disorders are patterns of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person experiencing these symptoms.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by behaviors aimed at preventing weight gain, such as self-induced vomiting.

Anorexia Nervosa

A mental health disorder characterized by an intense fear of gaining weight and a distorted body image, leading to severe weight loss and health complications.

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