Trademarks Flashcards
1
Q
On oct 1 y1 - ritcher received an unfavourable judgement in defense of a trademark and paid 25000 in fees for their law firm. Calculate the amount of legal exp to be recorded.
A
Trademark and tradenames include corporate logos, advertising jingles, prod name that have been registered with the govt and serve to identify specific companies and products.
However, if you get an unfavorable judgement in defense of a trademark you cannot amortize the legal expense and must deduct them as current operating expense.
JE
Dr Legal exp - 25000
CR cash - 25000
