When a company develops a trademark the costs directly related to securing it should generally be capitalized. Which of the following costs associated with a trademark would not be allowed to be capitalized?
A) Attorney fees.
B) Consulting fees.
C) Research and development fees.
D) Design costs.

Question

Quizplus · Accepted Answer

Research and development fees cannot be capitalized as they are considered as expenses incurred during the development stage and not directly related to the securing of the trademark. Only costs directly related to securing the trademark can be capitalized, such as attorney fees, consulting fees, and design costs.

When a Company Develops a Trademark the Costs Directly Related