If a trademark is developed by the enterprise itself, the costs should be
A)capitalized if future benefits are reasonably assured.
B)capitalized.
C)expensed.
D)expensed if future benefits are reasonably assured.

Question

Quizplus · Accepted Answer

If a trademark is developed by the enterprise itself, the costs should be capitalized if future benefits are reasonably assured. This is in accordance with the general principle of capitalizing costs that are related to assets that are expected to provide economic benefits in the future. However, if there is uncertainty about the future economic benefits that will be derived from the trademark, it may be appropriate to expense the costs instead.

If a Trademark Is Developed by the Enterprise Itself, the Costs