Ramirez Stores purchased a trademark at the beginning of 2013 for $340,000.Economic benefits were expected for 10 years, but the trademark's legal life was 20 years.Also, during 2013, Ramirez incurred research and development costs of $200,000.The book value of the trademarks at December 31, 2013, is

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The trademark is amortized over its economic life of 10 years. Amortization for 2013 is $34,000 ($340,000/10). The book value at December 31, 2013, is $340,000 - $34,000 = $306,000. Research and development costs are expensed, not capitalized.

Ramirez Stores Purchased a Trademark at the Beginning of 2013