Focal Point Engineering Purchased a Trademark at the Beginning of the Year

Multiple Choice

Focal Point Engineering purchased a trademark at the beginning of the year for $200,000. Although the trademark's legal life is 20 years, economic benefits were expected for only 10 years. Also, during the year, the company incurred research and development costs of $200,000. The book value of the trademark at the end of the year, is

A) $200,000.
B) $180,000.
C) $175,000.
D) $280,000.