Strong Co. purchased a trademark from Wall Co. for $60,000 on July 1, 2000. Expenditures of $10,000 for successful litigation in defence of the trademark were paid on July 1, 2002. Strong estimates that the useful life of the trademark will be 20 years from the date of acquisition.
Calculate the carrying value of the trademark at December 31, 2002.

Question

Quizplus · Accepted Answer

The Answer of Strong Co. purchased a trademark from Wall Co. for $60,000 on July 1, 2000. Expenditures of $10,000 for successful litigation in defence of the trademark were paid on July 1, 2002. Strong estimates that the useful life of the trademark will be 20 years from the date of acquisition.
Calculate the carrying value of the trademark at December 31, 2002.

Strong Co Purchased a Trademark from Wall Co